Chapter 1 Basic Economic Concepts Section 1 1

Chapter 1 Basic Economic Concepts Section 1. 1 A Look at Wants and Needs

Wants and Needs Drive the Economy n Want: Things that you do not have to survive, but would like to have. ¨ i. Pod, n Needs: Things that you do need to survive. ¨ Basic n TV, Radio, Computers, Jordans, etc. needs are food, water, shelter, clothing, etc. Public wants vs. Private wants ¨ Public wants are shared by many people, for example, highways, libraries, and parks. ¨ Private wants are common amongst people but may not be shared, for example, car, cd’s, and dvd’s.

Satisfying Wants and Needs Businesses provide goods and services to satisfy wants and needs n Goods: physical products n ¨ Telephones, n groceries, etc. Services: tasks that businesses perform for consumers. ¨ Lawn maintenance, automobile repair, deliveries, etc.

How Resources Limit the Ability to Satisfy Wants and Needs n Resources: Items that people can use to obtain what they want or need. ¨ Money, fuel, labor. ¨ Resources limit the number of needs and wants people can get. If you only have enough money for 1 thing but you want 2 things, you are limited by your resources (money).

Making the Most of Your Resources Everyday you choose how you will use your resources to satisfy your wants and needs. n Make these decisions carefully. n The better the choices you make the more your resources can get you. n

Decision Making Process Step 1: Identify the situation n Step 2: Identify possible courses of action n Step 3: Determine the pros and cons n Step 4: Make a decision n Step 5: Evaluate your decision n

Personal and Business Decision Making Personal: steps in determining what orange juice you buy compared to steps involved in buying a car. n Business: how to effectively and efficiently use their resources n

Homework n Type out all definitions for Ch. 1 ¨ Save n Complete Section 1 -1 Graphic Organizer on R drive ¨ Save n to S drive Complete Section 1 -1 Reading Activity