Introduction to Business Chapter 1 Economic Decisions Essential Question: How do we decide how to allocate the resources to fulfill needs and satisfy wants?

Standards Addressed: 1.1Business Communications (C): Students will understand communications as applied to personal and professional situations. They will demonstrate competency by selecting and using appropriate forms of communications in a variety of situations Systems–use systems thinking to discuss the impact of cultural, organizational, technological and behavioral characteristics on the selection of communication strategies and methods. 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. They will demonstrate competency by using appropriate technology and other resources to solve business problems Economic Culture–explain how culture affects economic practice and business ethics Economic Systems–describe a variety of economic systems

Chapter Objectives:  Distinguish between needs and wants.  Explain the difference between good and services.  Describe the economic resources used in the production of goods and services.

Needs and Wants p.5  Needs are basic to survival.  food  clothing  shelter  Wants are not necessary for survival but add comfort and pleasure to our lives.  Wants are unlimited and can only be limited by us only by our imagination and ability to access.

Goods and Services p. 6  Goods are the items you can touch.  Purchasing a car, groceries, etc…  Services tasks that satisfy our wants through the effort of others.  Plumber, carpenter, real estate agent, doctor, dentist, lawyer, etc…

Economic Resources p.6  Natural Resources – raw materials supplied by nature.  Human Resources – people who work to produce goods and services.  Capital Resources – Tools, equipment and buildings used in producing goods and services.

The basic economic problem (scarcity or limited resources) p. 8  The problem which faces individuals, businesses and governments of satisfying unlimited wants with limited resources.

Economic choices p. 9 Economic decision making The process of choosing which want, among several wants being considered, will be satisfied. The Decision Making Process Define the problem. Identify the choices. Evaluate the advantages and disadvantages of each choice. Choose. Act on your choice. Review your decision.

Assignments Do Now Monday--Calculate Business Data p.14 #31 Tuesday--Calculate Business Data p.14 #33 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions p. 12. Discuss questions with your group and write a brief answer to both questions

Homework Define Key Terms Develop your Business Language p. 13. Answer Review your reading questions 1-11 p.12. Section One of The Resume Handbook for High School Students.