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 economy

The difference between a want and a need. I want a new laptop, but I need a rain jacket. Can you think of an example of a want and a need? Wants and needs determine what products and services businesses provide. Private wants Public wants - Individual and shared wants - Widely shared wants

Goods and Services Businesses provide goods and services to satisfy wants and needs. Goods are physical products. - Examples? Services are tasks that businesses perform for consumers. - Examples?

Resources and their effects on your wants and needs. Most consumers are able to satisfy their basic needs. Can you think of examples of people who can’t satisfy their basic needs? Resources are items that people can use to make or obtain what they need or want. Can you think of any examples of resources? - Money - Fuel - Labor To make the best use of limited resources, determine what your needs are and satisfy them first.

The decision–making process. The decision-making process can help you make good choices and make the most of your resources. It helps you to identify and consider your various alternatives and their consequences before you make a final decision. Five step process

Step 1 Identify the situation. - Is it a daily problem, or one that only comes up a few times in a lifetime.

Step 2 Identify possible courses of action. - Consider all of your options and alternative courses you could take.

Step 3 Determine the pros and cons. - Consider the advantages and disadvantages of each alternative. - Compare.

Step 4 Make a decision - Use the information you have gathered to make an informed decision.

Step 5 Evaluate your decision. - Once your decision is put into effect, ask yourself whether you achieved the results expected.

Personal Decision Making Can you think of an example? The longer a decision will affect your life, the more you need to evaluate your options and consider the possible consequences.

Business Decision Making Businesses must make thoughtful decisions that are consistent with their goals. Business managers constantly make decisions independently.

Question time! What is the difference between a want and a need? What does a public want refer to? Please give an example of a service. What is a basic need, please give one example? What are we usually referring to, when we say “resource”? What does the decision making process allow us to do? What does step 3 in the decision making process specify?

Homework P. 10 Review the key concepts 1, 2 and 3.