1 Chapter Mr. Manning pp. 4-17 A Look at Wants and Needs

Learning Objectives Explain the difference between public and private wants. Describe how resources can limit the number of wants people and businesses can satisfy List the steps in the decision making process.

WANTS Wants are the things you “wish” you could have. Each person has wants A group of people may also share the same wants. Although these wants are shared, they are considered private wants

PRIVATE WANTS

PUBLIC WANTS Some wants are widely shared by many people These wants are no longer considered private but become public wants. For the most part local, state, and federal governments satisfy public wants

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants PUBLIC WANTS Examples of public wants are: education, highways, and drinking water

SATISFYING WANTS AND NEEDS Needs - “Necessary wants;” food, shelter, clothing Goods can be physically weighed or measured Goods satisfy your wants and needs for material things

SATISFYING WANTS AND NEEDS Services are tasks that people or machines perform, things you can’t see or touch. Examples: auto tune-ups, tax accountant, haircut

What is another name for necessary wants? Needs Who or what satisfies our public wants? Local, state, and federal government

UNLIMITED WANTS, LIMITED RESOURCES Most people have unlimited wants for goods and services The more money you make, the more goods or services you want.

UNLIMITED WANTS, LIMITED RESOURCES A resource is anything that people can use to make or obtain what they need or want Examples of resources include fuel, timber, labor, and money

UNLIMITED WANTS, LIMITED RESOURCES The problem of unlimited wants and limited resources affects individuals, companies, and nations Resources limit what you buy Businesses and government affected

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants DECIDING ON YOUR RESOURCES The decision-making process has five essential steps: Identify the situation Identify possible courses of action Determine the pros and cons Make the best decision Evaluate your decision People make the most of their resources by making the right choices about what to buy

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants Graphic Organizer Graphic Organizer Economics’ Starting Points GOODS Tangible Material Things SERVICES Tasks Performed RESOURCES Anything people can use to make or obtain what they want or need WANTS Things you wish you could have NEEDS Necessary wants

HOMEWORK Rd. Pgs. 12-15 Review questions on Page 15 (1-3)

Learning Objectives Explain how profit and competition motivates business. Describe how business impacts you and how you impact business.

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants WHAT IS BUSINESS? Business is any activity that seeks profit by providing goods or services to others

WHAT IS BUSINESS? Businesses provide you with: Necessities (things you need) The opportunity to become wealthy

WHAT BUSINESS DOES EVERY BUSINESS DOES THIS! Identify opportunities for products or services Evaluate the demand for products or services Obtain start-up money Manage production of G&S Market goods & services Keep records EVERY BUSINESS DOES THIS!

BUSINESS’S MOTIVATIONS Profit - amount of money left over after a business has paid for the cost of producing its goods and services Profit is the motivation for taking the risk to start a business, in it to MAKE $

BUSINESS’S MOTIVATIONS A business is profitable when sales are high and costs are kept low SALES COSTS PROFITABLE BUSINESS =

BUSINESS’S MOTIVATIONS Competition - the contest between businesses to win customers Companies thrive on competition Companies have to be willing to change/adapt with the constant changing of the consumers’ needs and wants

BUSINESS AND YOU Businesses make many decisions that impact you YOU However, you also affect business

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants YOU AS A CONSUMER A consumer is a person who selects, purchases, uses, or disposes of goods or services Businesses affect you when they discontinue products – how does this affect you? The decision to stop manufacturing products is often because there is a decrease in demand

YOU AS A CONSUMER When a company is slow to respond to customers’ complaints and doesn’t communicate very well (BAD SERVICE), customers usually find another company’s product to buy

YOU AS A CONSUMER Consumers and Business interact to “change and innovate” the way we do things Examples:

Mr. Manning- Intro To Business Chapter 1 - Needs and Wants YOU AS A WAGE EARNER Businesses hire people to work When you’re an employee, your quality of work, decision-making skills, and input to problems help a business flourish and reflects on how the company looks Business decides how to produce products In order to make products and provide services, businesses hire people to work

WHY YOU SHOULD CARE Changes in the price of consumer goods, company bankruptcies, and interest rates affect your life What happens in business and government will make a difference to the world you live and work in

HOW THIS WILL HELP YOU When you become a business owner, manager, or employee, you’ll need business knowledge to make informed decisions The more education you have, the better your income,to satisfy your wants and needs.

HOMEWORK Chapter 1 Review (Page 16) Questions 2-7

THINGS TO THINK ABOUT… What do you like? Where do you want to work? Corporate or Entrepreneurship? Outside vs. Inside? Your wants and needs…

How are colleges going to meet the increased demand for continuing education courses? continued

Why is diversity an important stimulus to the workforce?

1 End of Chapter A Look at Wants and Needs