1.  By now you should have completed study guide pgs. 1-9 and read chapter one of your text.  Review want satisfaction chain  What is profit?  What kinds of choices do businesses face and what is a major goal of a business?  What are the basic economic decisions facing all societies?  Explain the 2 branches of economics?

2.  Define Desire:  Define Need:

3.  During the “Neolithic Revolution” farming was invented.  This allowed people to remain in one place.  They no longer had to spend all their time “Hunting and Gathering”  They were able to grow their own food.

4.  Initially humans were subsistence farmers, meaning that they produced only enough crops for themselves with none left over to save.  Eventually farmers got so good at farming that they began to be able to produce more than they needed.  What do you think they would do with their extra food?________________________ ___________________________________

5.  The extra grains produced by farmers could be traded to other people for things they had or grew.  You could take your rice and trade it for lemons wheat, because you may get bored of rice.  Where do you think people took their extra grains to trade?_______________________ _____________________________________

6.  Eventually cities grew out of these markets.  People eventually began to sell “specialized products” in markets besides the usual produce/grains, such as clothes, crafts etc.

7.  Markets: Whenever and Wherever people voluntarily exchange with one another.  What are some examples of different kinds of markets:________________ _______________________________

8.  1. Human Want: Cheese.  2. Land, Labor Capital: Farmer, Cows, Trucks deliver to cheese maker.  3. Production: Churning milk, making the cheese.  4. Results in Goods and Services: Cheese  5. Goes through distribution: Cheese gets loaded on a truck for delivery to store.  6. Goods available for consumption: You buy cheese.  7. Resulting in want – satisfaction: You eat the cheese. YUM!

9.  1. On a blank sheet of paper draw six circles.  2. Label each circle with appropriate words.  3. Inside each circle describe what occurs.  4. In a couple sentences describe what you believe to be the greatest obstacles.