Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 1 Lesson 2.1 Entrepreneurs Satisfy Needs and Wants Goals Distinguish between needs and wants. Describe the types of economic resources. Describe the role of entrepreneurs in the U.S. economy.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 2 Terms needs wants economic resources

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 3 Is It a Need or a Want? needs things that are necessary for survival wants things you think you must have in order to be satisfied add comfort and pleasure to your life

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 4 The role of business is to produce and distribute goods and services that people need and want.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 5 Needs Maslow’s hierarchy of needs states that: People’s basic psychological needs must be satisfied before they can focus on higher level needs.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 6

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 7 vary from individual to individual vary by situation needs

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 8 Wants economic wants a desire for material goods and services are the basis of an economy clothing housing hairstyling noneconomic wants nonmaterial things sunshine fresh air happiness

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 9 Needs and Wants are Unlimited Needs and wants are infinite. Satisfying one need or want may trigger a new need or want.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 10 What is the difference between needs and wants?

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 11 Economic Resources economic resources the means through which goods and services are produced goods products you can see and touch services activities that are consumed as they are produced

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 12 Entrepreneurs use economic resources to create the goods and services consumers use.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 13 Factors of Production natural resources raw materials supplied by nature human resources the people who create goods and services capital resources the assets invested in the production of goods and services

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 14 Limited Resources Economic resources are limited. Individuals, businesses, and countries compete for resources. High demand for a limited resource drives up the price for the resource.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 15 List the three types of economic resources and give an example of each.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 16 Role of Entrepreneurs in the U.S. Economy Entrepreneurs are the backbone of the U.S. economy. The development of small businesses helps to ensure a strong economic future.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 17 Supply and Demand Entrepreneurs look for unmet needs to satisfy consumer needs and wants.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 18 Capital Investment and Job Creation Entrepreneurs contribute to their local communities through: investment job creation

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 19 Change Agents The creation of new products can: change the way people live alter the way people conduct business As entrepreneurs create more goods and services, the needs and wants of consumers increase.

Entrepreneurship: Ideas in Action © Cengage Learning/South-Western Chapter 2 Slide 20 What are some things entrepreneurs contribute to the U.S. economy?