CHT1: ECONOMIC DECISIONS
NAME:_______________________
OSI CHAPTER REVIEW
DATE: ___________
Chapter 1: REVIEW YOUR READING: p. 12
Directions: Complete the following—
1. Give two examples of each of needs and wants—
Needs:
1—food
Wants:
1—CDs
2—shelter
2—vacation
2. Explain why wants are unlimited—
People change
When you satisfy one need, it usually creates another
3. Explain the ways in which businesses provide goods and services to satisfy our needs and wants—
In the American economy, businesses analyze demand
and make efforts to supply goods and services to meet
those demands.
4. Give one example of a service provided by a person and one provided by a machine—
Machine:
Person:
Swimming instruction
Automatic car wash
Financial advising
Automatic teller
House painting
Automatic change maker
5. How are economic resources involved in satisfying our wants and needs?
Our wants and needs are satisfied by goods and services;
economic resources are the means though which goods and
services are produced.
6. Name the three kinds of economic resources and give an example of each—
Human Resources:
Natural Resources:
Capital Resources:
Tools
Labor
Trees
Machinery
Farmers
Water
Factories
Waitresses
Minerals
Buildings
Teachers
Wildlife
Computers
Basketball players
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CHT1: ECONOMIC DECISIONS
NAME:_______________________
OSI CHAPTER REVIEW
DATE: ___________
REVIEW YOUR READING-continued
7. How important are human resources in producing goods and services?
It takes human resources to operate machines, run systems,
and make decisions that are necessary in the process of
producing goods.
8. Give two examples to show that economic resources are limited—
1—Oil, which we use for many things from heating
and cooling to making plastic for cars would be of little
value without the aid of human resources to process it.
2—Certain kinds of human resources in some career areas such as
doctors.
9. Explain what is meant by the basic economic problem, scarcity—
The problem of satisfying unlimited wants with limited resources
10. Do businesses and governments also deal with scarcity? Give examples to support your answer—
Both businesses and governments deal with scarcity:
Business—
Businesses might face a labor shortage in certain jobs or a
shortage of materials to produce their products
Governments—
Governments cannot do all the things the citizens wants,
because they cannot collect enough taxes to do everything
11. Name the six steps in the decision-making process—
4—Choose
1—Define the problem
5—Act on your decision
2—Identify the choices
6—Review your decision
3—Examine the advantages and disadvantages
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CHT1: ECONOMIC DECISIONS
NAME:_______________________
OSI CHAPTER REVIEW
DATE: ___________
DEVELOP YOUR BUSINESS LANUAGE:
VOCABULARY WORD BANK
basic economic problem—3
capital resources—6
goods—5
(scarcity)
(capital)
economic resources
(factors of production)—2
human resources—8
(labor)
needs—7
economic decision making—1
natural resources—4
wants—9
services—10
Directions:
For each numbered item, write the term from the word bank above that has the same meaning:
1. The process of choosing which want, among several wants being considered, will be satisfied—
Economic decision making
2. The means through which goods and services are produced—
Economic resources (factors of production)
3. The problem which faces individuals, businesses, and governments of satisfying unlimited wants
with limited resources—
Basic economic problem (scarcity)
4. Raw materials supplied by nature—
Natural resources
5. Things you can see and touch—
Goods
6. Tools, equipment, and buildings used in producing goods and services—
Capital resources
7. Things that are necessary for survival, such as food, clothing, and shelter—
Needs
8. People who work to produce goods and services—
Human Resources (labor)
9. Things that are not necessary for survival but that add comfort and pleasure to our lives—
Wants
10. Things that satisfy our wants through the efforts of other people or equipment—
Services
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