INTRO TO BUSINESSCHAPTER 1ECONOMIC DECISIONS AND SYSTEMS

1-1 Satisfying Wants and Needs1-2 Economic Choices1-3 Economic Systems1-4 Supply and Demand

1-1 SATISFYING NEEDS AND WANTS

Needs –

Wants –

Most products and services you purchase do more than meet your needs.

Needs and Wants are __________________.

1-1 SATISFYING NEEDS AND WANTS Goods –

Services -

Goods and services are consumed by both ____________ and _____________.

The U.S. is the largest producer of goods and services in the world. Americans consume more than any other country.

1-1 SATISFYING NEEDS AND WANTS Economic Resources – the means through

which good and services are produced; also called _____________ ___ ____________.

___________Resources – raw materials supplied by nature; limited

_________ Resources – people who produce goods and services

_________ Resources – products and money used in the production of goods and services

Note: All economic resources have a _____________ ____________

1-2 ECONOMIC CHOICES

Basic Economic Problem: ____________ Wants and Needs ___________ Economic Resources

Scarcity –

Scarcity forces you to make ____________ among alternatives.

1-2 ECONOMIC CHOICES

Economic Decision-Making –

Trade-off –

Opportunity Cost –

The benefit you get from your choice should be greater than the benefit of the next-best choice.

1-2 ECONOMIC CHOICES

The Decision-Making Process1. 2. 3. 4. 5. 6.

1-3 ECONOMIC SYSTEMS

Each __________ must decide how their available resources will be used to meet the needs and wants of their __________.What goods and services will be produced?

How will the goods and services be produced?

What needs and wants will be satisfied with the goods and services produced?

1-3 ECONOMIC SYSTEMS

Economic System –

Command Economy –

Market Economy –

Traditional Economy –

Mixed Economy –

1-3 ECONOMIC SYSTEMS

U.S. Economic System Capitalism –

Based on 4 Basic Principles1. 2. 3. 4.

1-4 SUPPLY AND DEMAND

Consumer –

Producers –

Producers determine what products and services will be available, the needs and wants they will try to satisfy, and the prices they want to receive.

1-4 SUPPLY AND DEMAND Consumers set Demand –

As price increases, demand ___________

Producers establish Supply –

As price increases, supply ___________

1-4 SUPPLY AND DEMAND

Determining Price Factors influencing demand:

Factors influencing supply:

Market Price –