1. ECONOMIC DECISIONS Unit 1, part one
Chapter 1
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ECONOMIC DECISIONS Unit 1, part one
GOALS
Distinguish between needs and wants.
Explain the difference between goods and services.
Describe the economic resources used in the production of goods and services.

2. Needs are basic to survival Wants add to the quality of life
Chapter 1
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NEEDS AND WANTS
Needs are basic to survival
Wants add to the quality of life

3. The Basic Economic Problem
Wants and Needs are UNLIMITED
Resources are LIMITED

4. GOODS AND SERVICES Goods are things you can see and touch.
Chapter 1
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GOODS AND SERVICES
Goods are things you can see and touch.
Services are things that satisfy your wants through the efforts of other people or equipment.

5. ECONOMIC RESOURCES Natural resources Human resources Capital resources
Chapter 1
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ECONOMIC RESOURCES
Natural resources
Human resources
Capital resources

6. LIMITED RESOURCES Scarcity affects everyone
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LIMITED RESOURCES
Scarcity affects everyone
Scarcity affects businesses and governments

7. ECONOMIC CHOICES Making economic decisions
Chapter 1
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ECONOMIC CHOICES
Making economic decisions
The decision-making process (6 step process)
Define the problem
Identify the choices
Evaluate the advantages and disadvantages
Choose
Act on your choice
Review your decision

8. Try this: Identify an economic choice you had to make
Define the problem
Identify the choices (what options did you have)
Evaluate the advantages and disadvantages (for EACH option)
Choose (which did you choose)
Act on your choice (assuming you DID)
Review your decision (happy or regrets – EXPLAIN)