Transcription of Chapter 1 Basic Economic Concepts
1 Chapter 1. Basic Economic Concepts Section A Look at Wants and Needs Click here to advance to the next slide. Read to Learn The Main Idea State the differences between wants and needs. Businesses make money by offering goods and services to satisfy the wants and needs of Describe how resources limit the number of consumers and other businesses. In this way, wants people and businesses can satisfy. wants and needs drive the economy. Explain how to use the decision-making process to make the most of your resources. Key Concepts Key Terms Wants and Needs Drive the Economy things that you do not have, but wants would like to have How Resources Limit the Ability to Satisfy Wants and Needs things that you must have in order needs to survive Making the Most of Your Resources goods physical products 1. Graphic Organizer Key Terms Suppose you had $10. You could buy lunch tasks that business perform for or go to a movie.
2 Services consumers Need Lunch Movie Want items that people can use to make or resources obtain what they need or want Which of these things do you want? Which do you need? Wants and Needs Drive the Economy An Abundance of Wants and Needs Businesses make money by satisfying the Wants and needs wants and needs of consumers and other determine what wants things that you do not businesses. products and services have to have to survive businesses provide. In this way, wants and needs drive the needs things that you must have economy. to survive Graphic Organizer Satisfying Wants and Needs Basic Private Public Needs Wants Needs Businesses provide goods and services goods Food A family may Highways physical products Water want a new Hospitals to satisfy the wants kitchen table services Shelter and needs of A business tasks that businesses may want a businesses and perform for consumers new computer system consumers.
3 2. How Resources Limit the Ability to Satisfy Making the Most of Your Resources Wants and Needs You can make the most of your resources by No one has enough resources making careful decisions about what to buy. resources to satisfy items that people can use all of their wants. to make or obtain what they need or want Figure The Decision-Making Process Step 1 Identify the situation. You work as an event planner for a local company. You are in charge of hiring a caterer for the Step 2 Identify possible courses of action. company's 10th anniversary celebration. You have bids from four caterers in town. One of the bids is Step 3 Determine the pros and cons. from a caterer who is an old friend. His bid is higher than the three others. Step 4 Make the decision. Decision Making Would your relationship with the caterer affect which company you would hire? Step 5 Evaluate the decision. Explain your answer.
4 Answer 1. Describe the differences between public wants and private wants. The event planner should recuse himself or herself from the decision-making process due to the Public wants are shared by many people;. conflict of interest. The employee has an ethical individuals or small groups of people have obligation to act in the best interests of the private wants. company. 3. 2. Define resources. 3. List the steps in the decision-making process. Resources are items people use to make or obtain what they need or want. Examples of identify the situation, list possible courses of resources include money, fuel, and labor. action, determine pros and cons, make the decision, evaluate the decision End of Chapter 1. Basic Economic Concepts Section A Look at Wants and Needs 4.
