1. Back to Table of Contents pp. 4-17 Chapter 1 A Look at Wants and Needs

2. Introduction to Business, A Look at Wants and Needs Slide 2 of 48 Why It’s Important Businesses exist to satisfy people’s basic needs all the way to their lavish wants. Examples of basic needs? Examples of lavish wants? Competition and profit motivate these businesses to continually improve and invent new products and services. Video games are a perfect example

3. Introduction to Business, A Look at Wants and Needs Slide 3 of 48 An Abundance of Wants Wants are the things you wish you could have. Each person has wants.

4. Introduction to Business, A Look at Wants and Needs Slide 4 of 48 An Abundance of Wants Some wants are widely shared by many people. (Public wants)

5. Introduction to Business, A Look at Wants and Needs Slide 5 of 48 An Abundance of Wants For the most part local, state, and federal governments satisfy public wants.

6. Introduction to Business, A Look at Wants and Needs Slide 6 of 48 Satisfying Wants and Needs With Goods and Services Necessary wants are needs.

7. Introduction to Business, A Look at Wants and Needs Slide 7 of 48 Satisfying Wants and Needs With Goods and Services Goods can be physically weighed or measured.

8. Introduction to Business, A Look at Wants and Needs Slide 8 of 48 Satisfying Wants and Needs With Goods and Services Services are tasks that people or machines perform.

9. Introduction to Business, A Look at Wants and Needs Slide 9 of 48 Unlimited Wants, Limited Resources Limited Resources Most people have unlimited wants for goods and services. (Scarcity) The more money you make, the more goods or services you want.

10. Introduction to Business, A Look at Wants and Needs Slide 10 of 48 Unlimited Wants, Limited Resources Limited Resources A resource is anything that people can use to make or obtain what they need or want.

11. Introduction to Business, A Look at Wants and Needs Slide 11 of 48 Unlimited Wants, Limited Resources Limited Resources The problem of unlimited wants and limited resources affects individuals, companies, and nations.

12. Introduction to Business, A Look at Wants and Needs Slide 12 of 48 Unlimited Wants, Limited Resources Limited Resources Resources limit the number of wants people can satisfy. Businesses and government are influenced by the same problem.

13. Introduction to Business, A Look at Wants and Needs Slide 13 of 48 Deciding on Your Resources People make the most of their resources by making the right choices about what to buy.

14. Introduction to Business, A Look at Wants and Needs Slide 14 of 48 Deciding on Your Resources The decision-making process has five essential steps: 1.Identify the problem. 2.List the alternatives. 3.Determine the pros and cons. 4.Make the best decision. 5.Evaluate your decision.

15. Introduction to Business, A Look at Wants and Needs Slide 15 of 48 Graphic Organizer GOODS Tangible Material ThingsGOODS Tangible Material Things Economics’ Starting Points Graphic Organizer SERVICES Tasks PerformedSERVICES Tasks Performed RESOURCES Anything people can use to make or obtain what they want or need NEEDS WANTS Things you wish you could have Necessary wants

16. Introduction to Business, A Look at Wants and Needs Slide 16 of 48 What Is Business? Business is any activity that seeks profit by providing goods or services to others.

17. Introduction to Business, A Look at Wants and Needs Slide 17 of 48 What Is Business? Businesses provide you with necessities. Businesses also provide people with the opportunity to become wealthy.

18. Introduction to Business, A Look at Wants and Needs Slide 18 of 48 Business Activities A business must organize the people and equipment to provide the product. People within the organization manage the company’s resources to produce the product.

19. Introduction to Business, A Look at Wants and Needs Slide 19 of 48 Business Activities The company markets the product or service by deciding where to sell it and how to advertise it.

20. Introduction to Business, A Look at Wants and Needs Slide 20 of 48 Business’ Motivations Profit is the amount of money left over after a business has paid for the cost of producing its goods and services.

21. Introduction to Business, A Look at Wants and Needs Slide 21 of 48 Business’ Motivations A business is profitable when sales are high and costs are kept low.

22. Introduction to Business, A Look at Wants and Needs Slide 22 of 48 Business’ Motivations Companies thrive on competition, or the contest between businesses to win customers.

23. Introduction to Business, A Look at Wants and Needs Slide 23 of 48 Figure 1.2 RIDING THE SEA OF CHEESES Cheese lovers’ tastes are changing to specialty cheeses. While cheddar and mozzarella are mainstays, sheep’s and goat’s milk cheeses are moving straight ahead to your nearest deli counter. Imagine you want to become a cheese maker. What kind of cheese would you make. Why?

24. Introduction to Business, A Look at Wants and Needs Slide 24 of 48 Business and You Businesses make many decisions that impact you. However, you also affect business.

25. Introduction to Business, A Look at Wants and Needs Slide 25 of 48 You as a Consumer A consumer is a person who selects, purchases, uses, or disposes of goods or services. Business is aware of your changing needs and wants.

26. Introduction to Business, A Look at Wants and Needs Slide 26 of 48 You as a Consumer Businesses affect you when they discontinue products. The decision to stop manufacturing products is often because there is a decreasing demand.

27. Introduction to Business, A Look at Wants and Needs Slide 27 of 48 You as a Consumer When a company is slow to respond to customers’ complaints and doesn’t communicate very well, then customers usually find another company’s product to buy.

28. Introduction to Business, A Look at Wants and Needs Slide 28 of 48 You as a Wage Earner In order to make products and provide services, businesses hire people to work. In order to produce a product, the business decides how it will be produced.

29. Introduction to Business, A Look at Wants and Needs Slide 29 of 48 You as a Wage Earner In business today, workers have more input about how business is done. People are valuable resources When you’re an employee, quality of work, decision-making skills, and input to problems help a business flourish.

30. Introduction to Business, A Look at Wants and Needs Slide 30 of 48 Self-Discovery in Business 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.

31. Introduction to Business, A Look at Wants and Needs Slide 31 of 48 The Value of Knowledge When you become a business owner, manager, or employee, you’ll need business knowledge. The more education you have, the better your income.

32. Introduction to Business, A Look at Wants and Needs Slide 32 of 48 What Do You Like? Learn as much now in order to make an informed decision in the future. Explore all the business opportunities in order to see what is available to you in order to satisfy your wants and needs.

33. Introduction to Business, A Look at Wants and Needs Slide 33 of 48 Does the media sway the public’s wants and needs? How do environmental laws affect some businesses? continued

34. Introduction to Business, A Look at Wants and Needs Slide 34 of 48 Why is diversity an important stimulus to the workforce?