Basic Economic Questions 35 Explain the three basic

Basic Economic Questions 35 – Explain the three basic economic questions answered by any economy.

2 Think About It How does a nation’s economy determine which goods & services should be produced? the wants and needs of its people

3 Think About It How do you – as an individual consumer – voice your opinion about what should be produced? $$$ with our dollars $$$$ (what we choose to spend our money on)

4 Three Basic Questions What goods and services should be produced? How should those goods & services be produced? For whom should they be produced?

5 Why Does it Matter? The way a nation answers the three basic questions determines what kind of economy it has. We will learn about economic systems and mixed economies next week!

6 Making Economic Decisions 38 – Describe the decision-making process.

7 Think About It! The three basic economic questions help a society (government) determine how resources are used to fulfill needs & wants. How do businesses decide which needs & wants to fulfill for consumers? What process do you or your family follow to decide how you should use your resources (money) for needs & wants?

8 Decision-Making …is the process of choosing which wants will be satisfied.

9 The Decision-Making Process 1) Define the problem. 2) Identify alternatives. 3) Evaluate advantages & disadvantages, including opportunity costs, for each solution. 4) Choose the best solution. 5) Take action. 6) Review the decision.

10 Consider an Example… Decision Making Worksheet

11 Closure 1) Are there situations in which one of the basic economic questions is more important or more difficult to answer than the others? Explain. 2) How does opportunity cost affect the decisionmaking process? 3) How can the results of a decision be evaluated? Provide an example. 4) Explain the relationship between goal setting, decision making and problem solving.

12 modern decision-making process

13 modern decision-making process TEAMS: 1. Brown/Lee/Salas 2. Googan/Malloy/Schleyer 3. Gillie/Maltese/Shaikh 4. Lurie/Marting/Smith 5. Hannas/Mutton/Travitsky 6. Holstein/Powers/Voddepalli 7. Hoyler/Ramirez/Youssef 8. Jernigan/Rogers/Zaib