Download ECONOMIC DECISIONS

ECONOMIC DECISIONS
UNIT 1, PART ONE
GOALS
•Distinguish between needs and wants.
•Explain the difference between goods and
services.
•Describe the economic resources used in the
production of goods and services.
NEEDS AND WANTS
 Needs are basic to survival
 Wants add to the quality of life
The Basic Economic Problem
 Wants and Needs are UNLIMITED
 Resources are LIMITED
GOODS AND SERVICES
 Goods are things you can see and touch.
 Services are things that satisfy your wants
through the efforts of other people or
equipment.
ECONOMIC RESOURCES
 Natural resources
 Human resources
 Capital resources
LIMITED RESOURCES
 Scarcity affects everyone
 Scarcity affects businesses and governments
ECONOMIC CHOICES
 Making economic decisions
 The decision-making process (6 step process)
 Define the problem
 Identify the choices
 Evaluate the advantages and disadvantages
 Choose
 Act on your choice
 Review your decision
Try this:
Identify an economic choice you had to make
1.
2.
3.
4.
5.
6.
Define the problem
Identify the choices (what options did you have)
Evaluate the advantages and disadvantages (for
EACH option)
Choose (which did you choose)
Act on your choice (assuming you DID)
Review your decision (happy or regrets –
EXPLAIN)