Economic Decisions Review By Mr. Soule

Difference between Needs and Wants  Needs: -are essential to live -Food -Cloths -Shelter  Wants: -add to the quality of life -Cars -Big house -New TV -Ipad -Etc.… Needs and wants are unlimited

How do people satisfy their wants and needs?  People satisfy their wants and needs by purchasing and consuming goods and services.

What is the difference between Goods and Services Goods  These are things that you can see and touch. -Ipad -laptop -cloths -car Services  These are satisfied by the efforts of other people or equipment. -Hairstylist -Arcade games -Music lesson

Economic Resources  Natural resources  Human resources  Capital resources Resources are limited

Natural Resources  This is all material that comes from the Earth -Iron -Gold -Oil -Copper are all examples All products in the class are made up of natural resources.

Human Resources  The people who work to produce the goods and services. -Farmers -Factory workers -Police -Insurance Reps Remember you are a human resource and you will be a valuable asset for a company

Capital Resources  These are the tools, equipment, and the buildings that are used to produce the goods and services. -Office Buildings -Computers -Delivery Trucks  Capital is also another term for money to run a business

Limited Resources  There is a limited amount of resources that we can have.  No one has unlimited amount of capital or resources  Scarcity affects everyone -Basic economic problem- unlimited wants to limited resources.

Decision Making Process  Define the problem  Identify the choice  Evaluate the advantage and disadvantage of each choice.  Choose  Act on your choice  Review your decision