1. Introduction to Marketing
Objectives
Understand the difference between wants and needs
Explain the difference between goods and services
Describe economic resources used in the production of goods and services
Understand how scarcity applies to economics
Exit Ticket:
Describe the difference between public wants and private wants.
Define resources.
What are the steps in a decision-making process?
Activities
Is it a Good or Service?
Decision Making Process Worksheet
Pawn Stars Video

2. Economic Decisions

3. Today’s Objectives Identify the difference between wants and needs
Explain the difference between goods and services
Describe economic resources used in the production of goods and services
Understand how scarcity applies to economics
Distribute: Note Guide

4. Economics Defined
Study of producing, distributing, and consuming goods and services
Involves decisions regarding the use of resources
Decisions are made by
Individuals (consumers)
Businesses (producers)
Societies (government)

5. Economic Decisions
Businesses make money by offering goods and services to satisfy the wants and needs of consumers and other businesses.
This is how wants and needs drive the U.S. economy.

6. Think about it!
Make a list of the last 10 things you bought (or your parents bought for you)

7. The Economy’s Driving Force
NEEDS
Things necessary for basic living
Essential to human life; required for survival
Includes basic food, water, shelter, clothing
Wants and needs determine what goods and services will be produced by businesses. Individuals (consumers) make decisions on what to buy – they vote with their dollars.
Private wants are what individuals or groups of people desire. Public wants are widely shared by many people (society), such as highways, public libraries, and parks. The government typically satisfies public wants.

8. The Economy’s Driving Force
WANTS
Things you would like to have
Non-essential, but add to quality of life
Also referred to as a luxury
Wants and needs determine what goods and services will be produced by businesses. Individuals (consumers) make decisions on what to buy – they vote with their dollars.

9. From your list, how many items were needs and how many were wants?

10. Wants and Needs
Wants and needs determine what goods and services will be produced by businesses.
Individuals (consumers) make decisions on what to buy
they vote with their dollars

11. Private vs. Public Wants
Private wants are what individuals or small groups of people desire
Public wants are widely shared by many people (society), such as highways, public libraries, shopping centers and parks.

12. What satisfies our needs and wants?
Goods are things you can see and touch. They are tangible.
Shoes, Groceries, IPod
Services are satisfied through the efforts of other people or by equipment. They are intangible.
Getting a haircut, go to a movie, landscaping
In order to create goods or to provide a service, you need resources.

13. Goods & Services WS
Get out your worksheet from the middle of your pod.

14. Economic Resources

15. Resources Are Limited Resources = Money Resources are limited
Most people have unlimited wants
Consumers have to make choices
economic decisions
Basic Needs +
Unlimited Wants
Economic Resources

16. Scarcity Shortage of resources
Conflict between unlimited wants and limited resources
As a society, we have to manage choices that affect how wants and needs are satisfied. The way we manage a limited resource like gas can affect other wants and needs. Is there a scarcity of gasoline? Why? How has it affected economic decisions?
Individuals: [ Private Wants – Discretionary Income ]
Businesses: [ Unlimited Wants – Economic Resources ]
Society: [ Public Wants – Economic Resources ]

17. Price Gouging Videos Price Gouging Stossel in the Classroom
No Price Gouging after Sandy Affects
The seller prices goods much higher than considered
Viewed as taking advantage of the consumer

18. The Decision-Making Process
START on 9/7/11

19. Economic Decision-Making
This is the process of choosing which of your wants will be satisfied.
The decision can be made by following six steps…

20. Decision-Making Process
Define problem.
Identify alternative solutions
Evaluate advantages / disadvantages of each solution
Choose the best alternative
Take action on the choice
Review the decision 1 2 3 4 5 6

21. Decision-Making Handout