Satisfying Needs & Wants
(1.1) & Economic Choices
(1.2)
IBM
9-17-12
Warm-up and Objectives
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Students will learn to distinguish
between wants and needs and
goods and services.
Students will describe the types
of economic services
Warm-up- What are wants and
needs? Is there a difference
between the two?
Satisfying Needs and Wants
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Needs- things you have to have
in order to survive such as food,
water, shelter, & clothing. Ex.
salad, water, shirt, shelter.
Wants- a want is something that
you desire but that you do not
necessarily need to live. Ex.
Latest fashion, CD, movie, Wii,
IPhone 5.
Values and Goals
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Needs and wants are determined by
one’s values and goals
Values are the beliefs and practices
in your life that are very important to
you.
A goal is a destination, something
you want or need, which you acquire
by taking certain steps.
What are some of your values?
Values and Goals
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Examples of how values, goals,
wants, and needs are connected.
I value education/ want to make a
difference in my community. I also
need to earn a living to support
myself. Thus, I decided to get good
grades, go to college, and pursue a
career in Education.
Goods vs. Services
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You may satisfy your needs and
wants by purchasing goods and
services.
A good is something that you can
see and touch. Ex. Magazine, pillow,
IPad.
A service is an activity that is
consumed at the same time it is
purchased. Services are intangible.
Ex. Hair salons, nail salons, Spa,
etc.
Goods and Services for
Business and Consumers
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Goods and Services can be
purchased by business or by
consumers.
Some goods and services are
unique for business and
consumers.
Some goods and services are
similar but meet different needs.
Goods and Services
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Some businesses offer both
goods and services.
Ex. Rays the Steaks, Hair
salons that sale hair products
and style clients, nail salons that
sell polish and fix nails.
Can you name any others?
Types of Economic Resources
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Did you know that the US economy
is the largest producer and
consumer of goods and services in
the world.
Few goods and services are free and
individuals do not make most of the
products and services they consume
as they did years ago.
So What happens?
Types of Economic Resources
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People use Economic resources to
get the goods and services they
want and need.
Economic resources, also called
factors of production, are the means
by which goods and services are
produced.
The three types of economic
resources: natural, human, & capital
resources.
Types of Economic Resources
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Natural resources are raw materials
supplied by nature.
Ex. Oil, minerals, nutrients, air, river,
lakes and oceans.
ALL products you consume begin
with one or more natural resources.
Think about a can of Chicken Noodle
Soup? Which natural resources does
it contain?
Types of Economic Resources
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Human resources and the people
that produce goods and services.
Ex. Farmers raise livestock and
crops, factory workers and engineers
process and package products,
Truck drivers and grocery store
employees are responsible for
delivering and making products
available to consumers.
Types of Economic Resources
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People (human resources) need
tools and equipment to convert
natural resources into products and
services.
Capital resources are the money and
equipment used in the production of
goods and services.
Ex. Money, buildings, equipment, &
supplies
Limited Resources
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All economic resources are limited
so products and services that can be
produced are also limited.
If resources are used to produce one
product they will not be available for
the production of something else.
Individuals, businesses, & countries
compete for access to and
ownership of economic resources.
Resources that are in high demand,
or those that are limited in supply will
command higher prices.
Closure Activity
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Name two of your wants and two of
your needs.
What is the difference between a
good and service
Does the service industry supply
more needs or wants?
What natural resources are found
near your home?
Give two examples of capital and
human resources?
Economic Choices
Students will:
 Understand the basic economic
problem
 Explain the steps of the decision
making process.
The Basic Economic Problem
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Scarcity- Not having enough
resources to satisfy every need and
want.
Scarcity forces everyone to make
choices or decisions among the
alternatives.
Ex. If you earn $75/week and you
spend that on a new pair of shoes,
then you may not enough for a
movie and pizza with friends.
Choices, Tradeoffs, and
Opportunity Cost
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Economic Decision Making-process
of choosing which wants and needs,
among several options, will be
satisfied.
When you give up something for
something else you are making a
tradeoff.
The opportunity cost is the value of
the next best alternative that you did
not choose.
Choices, Tradeoffs, and
Opportunity Cost
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Ex. You may give up working fulltime to pursue a college degree. If
you could make $25K from working
$25k is your opportunity cost.
Remember that the benefit you get
from your choice should always be
greater than the benefit from the next
best choice.
The Decision-Making Process
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The decision-making process
has 6 steps.
Define the problem-the problem
must be clearly defined in order
to make a decision.
Identify the choices-it is
common for you to face choices
with many alternatives.
The Decision-Making Process
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Evaluate the advantages and
disadvantages of each choiceits always helpful to write down
each choice and the adv. &
disadv. to that choice.
Chose One-Select the choice
that you believe will be the best
for you at this particular time.
The Decision-Making Process
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Act on your choice- Once you
have selected a choice, do
whatever it is that you have
chosen.
Review your decision-After you
experience the results of your
choice, it is important to review
your choice.
DECISIONS
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YOUR PERSONAL, CAREER, AND
FINANCIAL DECISIONS ARE ALL
INTERWOVEN.
SOME TIMES YOU MAY NOT
KNOW THE IMPACT OF YOUR
DECISIONS UNTIL SOME TIME
HAS PASSED.
MAKING NO DECISION IS
ACTUALLY MAKING A DECISION, A
DECISION TO ACCEPT
WHATEVER HAPPENS.
Closure Questions
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True or False-The basic economic problem
is that consumers have too many
resources to chose from.
What is economic decision-making?
Describe a tradeoff that you have made
recently.
Yorktown needs computer for its business
program. They are deciding between
desktop and laptop. If Yorktown chooses
laptops what is the opportunity cost?
What is the 1st and last step in the
decision-making process?
Why should you evaluate the advantages
and disadvantages of your choices.