Economic Decisions and Systems 1-1 Satisfying Needs and Wants 1-2 Economic Choices 1-3 Economic Systems 1-4 Supply and Demand

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

Needs and Wants Needs are essential. Wants add to the quality of life. Needs and wants are unlimited.

Goods and Services Goods and services for businesses and consumers Goods are things you can touch Services are intangible The U.S. Economy

Economic Resources Natural Resources Human Resources Capital Resources Resources are limited

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

“Unlimited Wants and Need” “Limited Resources” The Basic Economic Problem The mismatch of unlimited wants and needs and limited resources Scarcity Not having enough resources to satisfy every need

The Basic Economic Problem Choices Scarcity forces you to make choices or decisions among alternatives. Economic Decision Making The process of choosing which wants, among several options, will be satisfied.

Tradeoffs and Opportunity Cost When you give up something to have something else Opportunity Cost The value of the next-best alternative that you did not choose What you are giving up

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