Lesson 2 1 Entrepreneurs Satisfy Needs and Wants

Lesson 2. 1 Entrepreneurs Satisfy Needs and Wants Goals n Distinguish between needs and wants. n Describe the types of economic resources. n Describe the role of entrepreneurs in the U. S. economy. Chapter 2 1 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Terms n needs n wants n economic resources Chapter 2 2 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Is It a Need or a Want? n needs n things that are necessary for survival n wants n things you think you must have in order to be satisfied n add comfort and pleasure to your life Chapter 2 3 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

n The role of business is to produce and distribute goods and services that people need and want. Chapter 2 4 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Needs n Maslow’s hierarchy of needs states that: n People’s basic psychological needs must be satisfied before they can focus on higher level needs. Chapter 2 5 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Chapter 2 6 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

n needs n vary from individual to individual n vary by situation Chapter 2 7 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Wants n economic wants n a desire for material goods and services n are the basis of an economy n clothing n housing n hairstyling n noneconomic wants n nonmaterial things n sunshine n fresh air n happiness Chapter 2 8 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Needs and Wants are Unlimited n Needs and wants are infinite. n Satisfying one need or want may trigger a new need or want. Chapter 2 9 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

What is the difference between needs and wants? Chapter 2 10 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Economic Resources n economic resources n the means through which goods and services are produced n goods n products you can see and touch n services n activities that are consumed as they are produced Chapter 2 11 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

n Entrepreneurs use economic resources to create the goods and services consumers use. Chapter 2 12 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Factors of Production n natural resources n raw materials supplied by nature n human resources n the people who create goods and services n capital resources n the assets invested in the production of goods and services Chapter 2 13 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Limited Resources n Economic resources are limited. n Individuals, businesses, and countries compete for resources. n High demand for a limited resource drives up the price for the resource. Chapter 2 14 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

List the three types of economic resources and give an example of each. Chapter 2 15 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Role of Entrepreneurs in the U. S. Economy n Entrepreneurs are the backbone of the U. S. economy. n The development of small businesses helps to ensure a strong economic future. Chapter 2 16 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Supply and Demand n Entrepreneurs look for unmet needs to satisfy consumer needs and wants. Chapter 2 17 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Capital Investment and Job Creation n Entrepreneurs contribute to their local communities through: n investment n job creation Chapter 2 18 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

Change Agents n The creation of new products can: n change the way people live n alter the way people conduct business n As entrepreneurs create more goods and services, the needs and wants of consumers increase. Chapter 2 19 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western

What are some things entrepreneurs contribute to the U. S. economy? Chapter 2 20 Entrepreneurship: Ideas in Action © Cengage Learning/South-Western