Unit 1: The Economy and You Chapter 1: Basic Economic Concepts Chapter 2:Economic Resources and Systems Chapter 3: Economic Activity in a Changing World Chapter 4: Business Ethics and Social Responsibility

Unit 1 Essential questions Describe economic activity and how it affects everyday life. What is the difference between a “want” and a “need”? How do businesses satisfy wants and needs? Why must societies make decisions about what to produce? How do societies choose what to produce? How is economic activity measured? What are the phases of the business cycle? Why is it important for businesses to behave in an ethical manor? What does it mean for a business to be socially responsible?

Chapter 1: Basic Economic Concepts learning goals State the difference between wants and needs Describe how resources limit the number of wants people and businesses can satisfy Explain how to use the decision-making process to make the most of your resources Explain how profit and competition motivate business List the activities businesses undertake when developing products and services Explain how business impacts your and how you impact business

Key Vocabulary Wants Needs Goods Services Resources Business Profit Competition Market research Consumer This is going to be the beginning of your business dictionary. This is a year-long assignment which I can check at any time, so make sure it is up to date. Make sure that the dictionary is in alphabetical order and each word is labeled with the chapter where the word was found in, as well as the definition and one example of the word.

Introduction to Business Math Calculate cost to buy 100 shares of Apple inc., Bank of America, and Yahoo Inc. as of today. What is the value of a company’s stock called in the market? Which company has the highest value in the market?

A Look at Wants and Needs Businesses make money by offering goods and services to satisfy the wants and needs of consumers and other businesses. In this way, wants and needs drive the US economy. Things I need to survive include _____________. Things I want include ____________ List 5 examples of each. Compare your list with a partner’s to see any similarities and differences

A Look at Wants and Needs You have $25 to buy something on Amazon.com, assume no shipping or taxes, what would you buy? Create a list at your table of the things you NEED then create a list of the things you WANT Next create a list for the wants and needs of a business in general. Download- Anticipation Guide Principles of Finance Circle whether you agree or disagree, and your reason as to why. We will go over the I learned section together.

Public vs. private wants and needs Public wants and similar to public utilities and services Highways, schools, libraries, parks, etc. Private wants are similar to the private sector businesses Subsidy on foreign goods Higher wages for the individual

Satisfying wants and needs The business market place consists of goods and services used to meet the wants and needs of the consumer What companies produce goods? What companies produce services? Resources are used by businesses to supply these wants and needs What are some resources needed to create a smart phone? What are some resources needed to advertise a product?

Ethics in business You work as an event planner for a local company. You are in charge of hiring a caterer for the company’s 10th anniversary celebration. You have bids from four caterers in town. One of the bids is from a caterer who is an old friend. Their bid is higher than the other three. Would your relationship with the caterer affect the company you would hire? Why?

Assignment Confidentiality Agreements A confidentiality agreement is a contract that requires the employee or contractor not to reveal information that they acquire while working for an employer or client. Research several agreements online to compare and contrast. Create a list with the similarities and difference between the agreements. Make a few comments as to which one seems harsher, were you surprised at the language, and how would you like to need a confidentiality agreement to go to work?

Making the most of your resources What term is used to maximize your outputs with the minimum amount of inputs? Use the following 5 steps to answer the following question: You found a $50 on the ground. You go on a shopping spree to get anything you want for $50. The day after you finish your best friend comes up to you in tears describing how they lost a $50 bill from their birthday. What do you do? Identify the situation Identify possible course of action Determine the pros and cons Make a decision Evaluate your decision

Making the most of your resources In making a house hold budget, you determine that your basic needs require 75% of your monthly income. The items you listed as “wants” cost another 15%. If your monthly income is $2,500, how much are you spending on wants? How much do you have left to save?

Creating a Presentation Presentation requirements: Note cards to project your voice and not talk to the board Use proper citations Keep slides uncluttered, but use appropriate graphics, fonts, and colors

Needs and the Environment We live in a very diverse climate with changing seasons and dynamic temperatures that vary between 100o and 0o F. Pick a geographical area, anywhere in the world. It could be a city, state, region, country, area as long as it is defined. Now describe the wants and needs of the people in this environment 5 slides (not including the title or citations) Note cards Business casual Rubric-presentation 5 vocab words from the chapter are to be used during the presentation

Business Activities Anticipation for business activities: At your table come up with one product you would like to analyze What resources are needed to create this product? What goods? What services? How does it get to the store shelf? Why do businesses produce overlapping products? For example, why do so many stores sell bread?

How to define business What defines business? The ability to make a profit What are some businesses that you patronize? Why do you patronize these specific businesses? What would motivate anyone to start or maintain a business? List 5 successful entrepreneurs who started a business and what their company is called

The significance of competition Companies can produce whatever they want, however they want Specific advantages based on pricing, ideas, production, efficiency, quality, service, etc. Target market- a group of people identified as those most likely to become customers Why do the best athletes and most talented actors make the most money? How come you can buy bread at so many locations? Why are there so many different brands of smart phones?

Business Activities Identify a need or want that needs to be satisfied Evaluate demand of products or services Acquire start-up money and capital Manage production Create a marketing plan Maintain good records or the business

Assignment: Presentation Research a unique product or service that you have never heard of Who created the product or service? What does the product or service do? Is there a company associated with this product or service? Is it successful? Can we buy this product/ how much does it cost? What is the target market for the product? Would you or your classmates be willing to buy this product?

How do you fit into business? As of right now you are considered a consumer Does business have a duty to supply your demands, or should a business create a supply to help create your demand? If you could purchase just 1 item in the world, that is for sale, what would you buy?

Business careers Go to the link: http://www.bls.gov/ooh/. Click on the “A-Z Index” and enter the search term “tomorrow’s jobs” Write a 1 page report about the topic. Conclude the paper with a list of things that you can do now to prepare yourself for this occupation.

Chapter 1 Quiz Vocab review