1. Goals
Explain the difference between needs and wants
Distinguish between goods and services
Describe the types of economic resources
Essential Question – what are economic resources?

2. The Main Idea
Businesses make money by offering goods and services to satisfy the wants and needs of consumers and other businesses. In this way, wants and needs drive the U.S. economy.

3. Graphic Organizer Farming created our agriculture-based economy
The invention of computers created the information-based economy
1600s
1700s
1850s
1900s
Present
Bartering and trading created our service-based economy
The Industrial Revolution started the industry-based economy
We live in the information age, but still rely upon the other types of economies

4. Which of these things do you want? Which do you need?
Graphic Organizer
Suppose you had $10. You could buy lunch or go to a movie.
Need
Want
Lunch
Movie
Which of these things do you want? Which do you need?

5. An Abundance of Wants and Needs
Wants and needs determine what products and services businesses provide.
Needs
Things that are required in order to live
wants
Things that add comfort and pleasure to your life

6. Unfortunately, they never end!
Needs and Wants
Our needs and wants =
(infinite)
Unfortunately, they never end!

7. The U.S. Economy – some facts pg. 7
Guess who is the largest producer of goods and services in the world?
Yep, the U.S.!
Guess who consumes more than any other country?

8. The U.S. Economy – some facts pg. 8
Guess who has twice as many shopping malls as they do high schools?
Yep, the U.S.!
Guess who produces more pounds of garbage per person per year?

9. Satisfying Wants and Needs
Businesses provide goods and services to satisfy the wants and needs of businesses and consumers.
goods
Things that you can see and touch - tangible
services
Are activities that are consumed at the same time they are produced – intangible

10. How Resources Limit the Ability to Satisfy Wants and Needs
No one has enough resources to satisfy all of their wants.
Economic resources
Are the means through which goods and services are produced.

11. Three types of economic resources
Economic resources are called factors of production.
The 3 kinds of economic resources are:
Natural resources (land)
Human resources (labor)
Capital resources

12. 1. Natural Resources
Raw materials supplied by nature

13. 2. Human Resources
People producing goods and services

14. Capital resources include buildings, equipment, and supplies
People must have access to tools and equipment in order to convert natural resources into products.
Capital resources include buildings, equipment, and supplies
Also include $$$$$$
Build a factory, buy a truck, pay employees

15. Factors of Production and Chicken noodle soup
Natural
Human
Capital

16. Making the Most of Your Resources
You can make the most of your resources by making careful decisions about what to buy.

17. You work as an event planner for a local company
You work as an event planner for a local company. You are in charge of hiring a caterer for the company’s 10th anniversary celebration. You have bids from four caterers in town. One of the bids is from a caterer who is an old friend. His bid is higher than the three others.
Decision Making Would your relationship with the caterer affect which company you would hire? Explain your answer.

18. Answer
The event planner should recluse himself or herself from the decision-making process due to the conflict of interest. The employee has an ethical obligation to act in the best interests of the company.

19. ????
How could a resource be used for one product result in a limited supply for another? Give examples

20. Describe the differences between a good an a service
Describe the differences between a good an a service. Which is tangible and which is intangible?
A good is a product that is tangible, or can be touched.
A service is something that is offered for our benefit. It isintangible.

21. Define resources.
Resources are items people use to make or obtain what they need or want. Examples of resources include money, fuel, and labor.

22. Intro to Biz Management
Understand the basic economic problem
Explain the steps in the decision-making process
Essential Question: How do we use the decision making process in our daily activities?

23. The Basic Economic Problem
Individuals and businesses have unlimited wants and needs….this leads to a problem
Scarcity
Not having enough resources to satisfy every need

24. The Basic Economic Problem
You earn $75 a week at a part time job. Do you spend it all on a new pair of kicks or save it so you have money for movie and pizza on Saturday
Economic decision-making
The process of choosing which wants, among several options, will be satisfied.

25. Tradeoffs and Opportunity Costs
Seeing that we must make choices all the time, we are making tradeoffs…we have to give up something in order to get something.

26. Tradeoffs and Opportunity Costs
You didn’t buy the new pair of shoes so you could go to the movies and get pizza.
What is the tradeoff?
No shoes….or another option……
tradeoff
When you give up something to have something else

27. Tradeoffs and Opportunity Costs
Economists evaluate an alternative by considering the opportunity cost of a decision
The enjoyment of owning the shoes was the opportunity cost
Opportunity costs
Is the value of the next-best alternative that you did not choose

28. Opportunity Cost
The benefit you get from your choice should be greater than the benefit from the next-best choice that you didn’t choose.
We as humans always try to make the best choice to benefit ourselves, naturally.

29. Opportunity Cost example
A person decides to quit his or her job and go back to school to increase their future earning potential. What is the opp cost?
A person decides to remain employed and not return to school to get a college degree. What is the opp cost?

30. Opportunity Cost example
If a city decides to build a hospital on vacant land it owns, what is the opp cost?
Answer - the opportunity cost is the value of the benefits forgone of the next best thing that might have been done with the land and construction funds instead

31. Class assignment
On a piece of paper, name at the top, list TEN situations where there is an opportunity cost present
Explain to me what the opportunity cost is in each situation.
Example – I chose to stay in and make power points instead of playing in the snow. The opportunity cost is me having fun playing outside.

32. The Decision-Making Process
Figure 1.1
The Decision-Making Process
Step 1
Define the problem.
Step 2
Identify the choices.
Step 3
Evaluate the advantages and
disadvantages of each.
Step 4
Choose one.
Step 5
Act on your choice.
Step 6- Review Your decision

33. 1. What is scarcity?
It is when you don’t have enough resources to satisfy all of your needs

34. 2. When you give up something to have something else, you a making a _______?
Tradeoff 34

35. List the steps in the decision-making process.
Define the problem, Identify the choices, Evaluate the advantages and disadvantages of each choice, Choose one, Act on your choice, Review your decision. 35

36. 4. Which country is the largest producer of goods and services?
USA 36