1. 1
Chapter
Mr. Manning
pp. 4-17
A Look at Wants and Needs

2. Learning Objectives
Explain the difference between public and private wants.
Describe how resources can limit the number of wants people and businesses can satisfy
List the steps in the decision making process.

3. WANTS
Wants are the things you “wish” you could have. Each person has wants
A group of people may also share the same wants. Although these wants are shared, they are considered private wants

4. PRIVATE WANTS

5. PUBLIC WANTS Some wants are widely shared by many people
These wants are no longer considered private but become public wants. For the most part local, state, and federal governments satisfy public wants

6. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
PUBLIC WANTS
Examples of public wants are: education, highways, and drinking water

7. SATISFYING WANTS AND NEEDS
Needs - “Necessary wants;” food, shelter, clothing
Goods can be physically weighed or measured
Goods satisfy your wants and needs for material things

8. SATISFYING WANTS AND NEEDS
Services are tasks that people or machines perform, things you can’t see or touch.
Examples: auto tune-ups, tax accountant, haircut

9. What is another name for necessary wants?
Needs
Who or what satisfies our public wants?
Local, state, and federal government

10. UNLIMITED WANTS, LIMITED RESOURCES
Most people have unlimited wants for goods and services
The more money you make, the more goods or services you want.

11. UNLIMITED WANTS, LIMITED RESOURCES
A resource is anything that people can use to make or obtain what they need or want
Examples of resources include fuel, timber, labor, and money

12. UNLIMITED WANTS, LIMITED RESOURCES
The problem of unlimited wants and limited resources affects individuals, companies, and nations
Resources limit what you buy
Businesses and government affected

13. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
DECIDING ON YOUR RESOURCES
The decision-making process has five essential steps:
Identify the situation
Identify possible courses of action
Determine the pros and cons
Make the best decision
Evaluate your decision
People make the most of their resources by making the right choices about what to buy

14. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
Graphic Organizer
Graphic Organizer
Economics’ Starting Points
GOODS
Tangible
Material
Things
SERVICES
Tasks
Performed
RESOURCES
Anything people can
use to make or obtain
what they want or need
WANTS
Things you wish you
could have
NEEDS
Necessary wants

15. HOMEWORK
Rd. Pgs
Review questions on Page 15 (1-3)

16. Learning Objectives
Explain how profit and competition motivates business.
Describe how business impacts you and how you impact business.

17. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
WHAT IS BUSINESS?
Business is any activity that seeks profit by providing goods or services to others

18. WHAT IS BUSINESS? Businesses provide you with:
Necessities (things you need)
The opportunity to become wealthy

19. WHAT BUSINESS DOES EVERY BUSINESS DOES THIS!
Identify opportunities for products or services
Evaluate the demand for products or services
Obtain start-up money
Manage production of G&S
Market goods & services
Keep records
EVERY
BUSINESS
DOES THIS!

20. BUSINESS’S MOTIVATIONS
Profit - amount of money left over after a business has paid for the cost of producing its goods and services
Profit is the motivation for taking the risk to start a business, in it to MAKE $

21. BUSINESS’S MOTIVATIONS
A business is profitable when sales are high and costs are kept low
SALES
COSTS
PROFITABLE BUSINESS =

22. BUSINESS’S MOTIVATIONS
Competition - the contest between businesses to win customers
Companies thrive on competition
Companies have to be willing to change/adapt with the constant changing of the consumers’ needs and wants

23. BUSINESS AND YOU Businesses make many decisions that impact you YOU
However, you also affect business

24. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
YOU AS A CONSUMER
A consumer is a person who selects, purchases, uses, or disposes of goods or services
Businesses affect you when they discontinue products – how does this affect you?
The decision to stop manufacturing products is often because there is a decrease in demand

25. YOU AS A CONSUMER
When a company is slow to respond to customers’ complaints and doesn’t communicate very well (BAD SERVICE), customers usually find another company’s product to buy

26. YOU AS A CONSUMER
Consumers and Business interact to “change and innovate” the way we do things
Examples:

27. Mr. Manning- Intro To Business Chapter 1 - Needs and Wants
YOU AS A WAGE EARNER
Businesses hire people to work
When you’re an employee, your quality of work, decision-making skills, and input to problems help a business flourish and reflects on how the company looks
Business decides how to produce products
In order to make products and provide services, businesses hire people to work

28. WHY YOU SHOULD CARE
Changes in the price of consumer goods, company bankruptcies, and interest rates affect your life
What happens in business and government will make a difference to the world you live and work in

29. HOW THIS WILL HELP YOU When you become a business
owner, manager, or employee,
you’ll need business knowledge to
make informed decisions
The more education you have,
the better your income,to satisfy
your wants and needs.

30. HOMEWORK
Chapter 1 Review (Page 16)
Questions 2-7

31. THINGS TO THINK ABOUT… What do you like? Where do you want to work?
Corporate or Entrepreneurship?
Outside vs. Inside?
Your wants and needs…

32. How are colleges going to meet the increased demand for continuing education courses?
continued

33. Why is diversity an important stimulus to the workforce?

34. 1
End of Chapter
A Look at Wants and Needs