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

2. 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.

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

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

5. Economic Resources Natural Resources Human Resources Capital Resources
Resources are limited

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

7. “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

8. 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.

9. 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

10. 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