Introduction to Business © Thomson South-Western ChapterChapter Economic Decisions and Systems Satisfying Needs and Wants Economic Choices Economic Systems Supply and Demand 1

Introduction to Business © Thomson South-Western Chapter 1 Slide 2 LESSON 1-1 LESSON 1-1 Satisfying Needs and Wants Goals Explain the difference between needs and wants. Distinguish between goods and services. Describe the types of economic resources.

Introduction to Business © Thomson South-Western Chapter 1 Slide 3 Key Terms needs wants goods services economic resources

Introduction to Business © Thomson South-Western Chapter 1 Slide 4 NEEDS AND WANTS Needs are essential Wants add to the quality of life Needs and wants are unlimited

Introduction to Business © Thomson South-Western Chapter 1 Slide 5 >> C H E C K P O I N T What is the difference between a need and a want?

Introduction to Business © Thomson South-Western Chapter 1 Slide 6 GOODS AND SERVICES Goods and services for businesses and consumers The U.S. economy

Introduction to Business © Thomson South-Western Chapter 1 Slide 7 >> C H E C K P O I N T How do people satisfy their wants and needs?

Introduction to Business © Thomson South-Western Chapter 1 Slide 8 ECONOMIC RESOURCES Natural resources Human resources Capital resources Resources are limited

Introduction to Business © Thomson South-Western Chapter 1 Slide 9 >> C H E C K P O I N T What are the three types of economic resources? Give an example of each type of resource.

Introduction to Business © Thomson South-Western Chapter 1 Slide 10 LESSON 1-2 LESSON 1-2 Economic Choices Goals Understand the basic economic problem. Explain the steps in the decision- making process.

Introduction to Business © Thomson South-Western Chapter 1 Slide 11 Key Terms scarcity economic decision-making tradeoff opportunity cost

Introduction to Business © Thomson South-Western Chapter 1 Slide 12 THE BASIC ECONOMIC PROBLEM Choices Tradeoffs and opportunity costs

Introduction to Business © Thomson South-Western Chapter 1 Slide 13 >> C H E C K P O I N T What is opportunity cost?

Introduction to Business © Thomson South-Western Chapter 1 Slide 14 THE DECISION-MAKING PROCESS 1.Define the problem. 2.Identify the choices. 3.Evaluate the advantages and disadvantages of each choice. 4.Choose one. 5.Act on your choice. 6.Review your decision.

Introduction to Business © Thomson South-Western Chapter 1 Slide 15 >> C H E C K P O I N T What are the six steps in the decision- making process?

Introduction to Business © Thomson South-Western Chapter 1 Slide 16 LESSON 1-3 LESSON 1-3 Economic Systems Goals Identify the three economic questions. Differentiate among the main types of economic systems. Describe the economic system of the United States.

Introduction to Business © Thomson South-Western Chapter 1 Slide 17 Key Terms economic system command economy market economy traditional economy mixed economy capitalism

Introduction to Business © Thomson South-Western Chapter 1 Slide 18 THE THREE ECONOMIC QUESTIONS What to produce? How to produce? What needs and wants to satisfy?

Introduction to Business © Thomson South-Western Chapter 1 Slide 19 >> C H E C K P O I N T What are the three economic questions?

Introduction to Business © Thomson South-Western Chapter 1 Slide 20 TYPES OF ECONOMIC SYSTEMS Command economy Market economy Traditional economy Mixed economies

Introduction to Business © Thomson South-Western Chapter 1 Slide 21 >> C H E C K P O I N T What are the main differences among the three economic systems?

Introduction to Business © Thomson South-Western Chapter 1 Slide 22 THE U.S. ECONOMIC SYSTEM Private property Freedom of choice Profit Competition

Introduction to Business © Thomson South-Western Chapter 1 Slide 23 >> C H E C K P O I N T Name the four principles of the U.S. economic system.

Introduction to Business © Thomson South-Western Chapter 1 Slide 24 LESSON 1-4 LESSON 1-4 Supply and Demand Goals Describe supply and demand orally and with graphs. Discuss how supply and demand affect prices of products and services.

Introduction to Business © Thomson South-Western Chapter 1 Slide 25 Key Terms consumer producers demand supply market price

Introduction to Business © Thomson South-Western Chapter 1 Slide 26 PARTICIPATING IN A MARKET ECONOMY Consumers set demand Producers establish supply A graphic view

Introduction to Business © Thomson South-Western Chapter 1 Slide 27 DEMAND AND SUPPLY

Introduction to Business © Thomson South-Western Chapter 1 Slide 28 >> C H E C K P O I N T How does the price of a product affect demand and supply?

Introduction to Business © Thomson South-Western Chapter 1 Slide 29 DETERMINING PRICE Factors influencing demand Factors influencing supply Determining market price

Introduction to Business © Thomson South-Western Chapter 1 Slide 30 MARKET PRICE

Introduction to Business © Thomson South-Western Chapter 1 Slide 31 >> C H E C K P O I N T How is the market price for a product determined?