Download A Look at Wants and Needs

A Look at Wants and Needs
Chapter 1
Wants – things you wish you could
have
Private vs. Public Wants
Needs – necessary wants
What are our basic needs?
Businesses provide goods/services:
Goods – can be physically weighed
and measured (tangible)
Services – tasks that people or
machines perform (intangible)
Unlimited wants, limited resources
Resources – anything that people
can use to make or obtain what they
want or need
http://cnn.com/video/data/2.0/video/education/2011/04/10/sn.wants.vs.needs.cnn.html
Decision-making - procedure for
carefully considering alternatives &
their consequences. Essential steps:
Step 1 – Identify the problem
Step 2 – List the alternatives
Step 3 – Determine the pros and cons
Step 4 – Make the best decision
Step 5 – Evaluate your decision
Business – any activity that seeks
profit by providing goods or services
Businesses provide:
• necessities
• luxuries
• opportunity to make money
Business Activities:
• Determines opportunities
• Evaluates demand
• Obtains funding
• Sets up/manages productions
• Produces
• Markets the good/service
• Keeps records
Businesses’ motivation is
Profit – the money left over after a
business has paid the costs of
producing its goods/services.
Competition – the contest between
businesses to win customers
Mutual relationship – you depend on
the business and they depend on you
• Consumer – a person who
selects, purchases, uses, or
disposes of goods or services
• Wage Earner – in order to make
products and services, businesses
need to hire workers
Review – Chapter 1
• A ___________can affect a __________by deciding
what to buy.
• ___________ is the contest between businesses to
win customers
• Things you must have to survive are _______
• _____________are tasks businesses perform for
consumers.
• Physical products are know as _________
• People use ___________to make what they want.
• ________are things we would like to have.
Business is any commercial activity that seeks ______ .
(A) profit B) goods and services C) retail D) money
The reward that motivates businesses to supply goods and services is ______ .
A) prestige B) employment C) the profit motive D) fees
Companies thrive on ______ .
A) competition B) limits C) service D) monopoly power
Competition is possible because companies have the freedom to produce the products they think
will be most______ .
A) popular B) profitable C) inexpensive D) unusual
For companies to compete successfully in a global market, they must combine quality, excellent
service, and______ .
A) market share B) popularity C) choice D) competitive prices
The act of gathering and analyzing information about the wants, needs, and preferences of
consumers in a certain market is called ______ .
(A) being nosy B) planning C) doing your job D) market research
A person who uses goods or services is called ______
A) a consumer B) lucky C) an owner D) rich
The decision to stop manufacturing products is often because of decreased
______ .
A) price B) business size C) demand D) competition
When consumers choose not to purchase a business's products or services,
the business usually ______
. A) succeeds B) loses C) wins D) fails