1. 1-1 Satisfying Needs & Wants
Goals:
Explain the difference between needs & wants
Distinguish between goods and services
Describe the types of economic resources

2. Chapter 1 - Economic Decisions
*Needs Vs. Wants
Needs - Necessary for survival
i.e. food, shelter, clothes
Wants - Not necessary for survival - bring comfort
i.e. stereo, television, chewing gum
*Abraham Maslow’s Hierarchy of Needs
Self Actualization
Esteem
Social
Safety
Physiological

3. Goods & Services Goods - things you can see and touch = tangible
T-Shirts, football, CDs
Services - Efforts provided by people, equipment, or technology
Haircut, movies in a theatre
Economic Resources (Factors of Production) - The means through which goods and services are produced (3 types)
Natural Resources - Raw materials supplied by nature
Iron ore, gold, water, fish, etc.
Human Resources - People who work to produce goods and services
Laborers
Capital Resources - Tools, equipment, buildings that are used to produce goods and services
Factories, computers, trucks, etc.
Money $ $ $ (needed to run a business)

4. Key Concepts
Pg. 11
Answer #1-3

5. Assignment NO COPY PASTE!
When you are done, research a resource that is scarce…describe the resource, why it is scarce, and statistics related to that resource.
Natural, Human, Capital
1 page-double spaced summary (your own words) report
Times New Roman 12 pt. font
Indent new paragraphs
Include the site you used. Cite your source!

6. 1-2 Economic Choices Goals: Understand the basic economic problem
Explain the steps in the decision-making process

7. The Basic Economic Problem
SCARCITY - THE BASIC ECONOMIC PROBLEM!
PRIORITIZE!
Scarcity – not having enough resources to satisfy every need
Forces us to make choices
Implement a budget
Economic Decision Making – the process of choosing which wants, among several options will be satisfied.

8. Choices, choices, choices
Trade – 0ff – when you give up something to have something else…
Opportunity cost – the value of the next-best alternative that you did not choose.
The benefit you get from your choice should be greater than the benefit from the next-best choice.
Businesses carefully calculate the opportunity costs of decisions before making a decision about how money will be invested

9. Decision-Making Process
Six Steps
1. Define the Problem
What is the central issue?
Must be defined in order to make a decision that will lead to a solution
2. Identify Choices
How many are there?
What is the opportunity cost?
The forgone benefits. What you are giving up by choosing one situation over another i.e. Movie vs.bowling. Movie wins, bowling is the opportunity cost.
3. Evaluate Choices
Look at the advantages and disadvantages of each choice/alternative

10. Decisions, Decisions, Decisions
4. Choose One
The best one for the particular time
5. Act on Your Choice
Just do it!
6. Review/Evaluate Your Decision
Did you define the problem correctly?
Did you look at all the available choices?
Did you act at the necessary time?

11. Decisions, Decisions, Decisions
Share a decision with me that you had to make over the weekend.
Describe, for each decision step, what happened
Define the issue/problem
Identify choices. What choices were available to you?
Evaluate choices. What were the pros and cons of each option?
What did you choose to do (choose one)?
Act on it – no explanation needed
How did it go (evaluate the decision)?