MAKE DECISIONS Explain how an economy meets its needs and wants Lesson 1.2 5/25/2019 LESSON 1.2 MAKE DECISIONS Explain how an economy meets its needs and wants Describe the six-step decision-making process INTRO TO BUSINESS

Providing Needs and Wants 1.2 Providing Needs and Wants The needs and wants of a society are met through the production of goods and services. This production requires the use of economic resources.

Needs and Wants Needs are things that are required in order to live. 1.2 Needs and Wants Needs are things that are required in order to live. Wants are things that are not necessary for survival, but add comfort and pleasure to our lives.

Goods and Services Goods are things you can see and touch. 1.2 Goods and Services Goods are things you can see and touch. Services are activities that are consumed at the same time they are produced.

1.2 Economic Resources The means through which goods and services are produced are called economic resources or factors of production. There are three kinds of economic resources: Natural resources Human resources Capital resources

Economic Decision Making 1.2 Economic Decision Making Economic decision making is the process of deciding among several alternative wants to determine the one most desired.

1.2 CheckPOINT Which of the three economic resources do you feel is the most important? Why?

The Decision-Making Process 1.2 The Decision-Making Process Review Your Decision 6 GOOD DECISION Act on Your Choice 5 Choose One 4 Evaluate Choices 3 Identify Choices 2 Define Problem 1 PROBLEM

1.2 CheckPOINT Which of the six steps in the decision-making process do you think is the most important? Give reasons for you answer.