By now you should have completed study guide pgs. 1-9 and read chapter one of your text. Review want satisfaction chain What is profit? What kinds of choices do businesses face and what is a major goal of a business? What are the basic economic decisions facing all societies? Explain the 2 branches of economics?
Define Desire: Define Need:
During the “Neolithic Revolution” farming was invented. This allowed people to remain in one place. They no longer had to spend all their time “Hunting and Gathering” They were able to grow their own food.
Initially humans were subsistence farmers, meaning that they produced only enough crops for themselves with none left over to save. Eventually farmers got so good at farming that they began to be able to produce more than they needed. What do you think they would do with their extra food?________________________ ___________________________________
The extra grains produced by farmers could be traded to other people for things they had or grew. You could take your rice and trade it for lemons wheat, because you may get bored of rice. Where do you think people took their extra grains to trade?_______________________ _____________________________________
Eventually cities grew out of these markets. People eventually began to sell “specialized products” in markets besides the usual produce/grains, such as clothes, crafts etc.
Markets: Whenever and Wherever people voluntarily exchange with one another. What are some examples of different kinds of markets:________________ _______________________________
1. Human Want: Cheese. 2. Land, Labor Capital: Farmer, Cows, Trucks deliver to cheese maker. 3. Production: Churning milk, making the cheese. 4. Results in Goods and Services: Cheese 5. Goes through distribution: Cheese gets loaded on a truck for delivery to store. 6. Goods available for consumption: You buy cheese. 7. Resulting in want – satisfaction: You eat the cheese. YUM!
1. On a blank sheet of paper draw six circles. 2. Label each circle with appropriate words. 3. Inside each circle describe what occurs. 4. In a couple sentences describe what you believe to be the greatest obstacles.