Chapter
1
A Look at Wants and Needs
pp. 4-17
Chapter
1
Learning Objectives
After completing this chapter, you’ll be
able to:
1. State the differences between wants and
needs.
2. Describe how limited resources relate to
wants.
continued
Introduction to Business, A Look at Wants and Needs
Slide 2 of 54
Chapter
1
Learning Objectives
After completing this chapter, you’ll be
able to:
3. Identify business activities that are used
for products and services.
4. List the two factors that motivate
businesses.
continued
Introduction to Business, A Look at Wants and Needs
Slide 3 of 54
Chapter
1
Learning Objectives
After completing this chapter, you’ll be
able to:
5. Explain the relationship between
business and you.
Introduction to Business, A Look at Wants and Needs
Slide 4 of 54
Chapter
1
Why It’s Important
Businesses satisfy people’s basic
needs all the way to their lavish
wants.
Competition and profit motivate
these businesses to continually
strive for your business.
Introduction to Business, A Look at Wants and Needs
Slide 5 of 54
Chapter
1
Key Words
wants
needs
goods
services
resource
business
profit
continued
Introduction to Business, A Look at Wants and Needs
Slide 6 of 54
Chapter
1
Key Words
competition
consumer
Introduction to Business, A Look at Wants and Needs
Slide 7 of 54
Chapter
1
An Abundance of Wants
Wants are the things you wish you
could have. Each person has wants.
A group of people may also share the
same wants. Although these wants are
shared, they are considered private
wants.
Introduction to Business, A Look at Wants and Needs
Slide 8 of 54
Chapter
1
An Abundance of Wants
Some wants are widely shared by
many people.
These wants are no longer considered
private but become public wants, such
as highways, drinking water, and
education.
Introduction to Business, A Look at Wants and Needs
Slide 9 of 54
Chapter
1
An Abundance of Wants
For the most part local, state, and
federal governments satisfy public
wants.
Introduction to Business, A Look at Wants and Needs
Slide 10 of 54
Chapter
Figure
1.1
1
WANTS AND NEEDS OF YOUR SANCTUARY
You need your
own “space.”
Studies show your
bedroom is an
expression of
yourself.
How would you
revamp your space
if you could?
Introduction to Business, A Look at Wants and Needs
Slide 11 of 54
Chapter
1
Satisfying Wants and Needs
With Goods and Services
Necessary wants are needs.
Food, shelter, and clothing are basic
needs.
Introduction to Business, A Look at Wants and Needs
Slide 12 of 54
Chapter
1
Satisfying Wants and Needs
With Goods and Services
Goods can be physically weighed or
measured.
Goods satisfy your wants and needs
for material things that you can see or
touch.
Introduction to Business, A Look at Wants and Needs
Slide 13 of 54
Chapter
1
Satisfying Wants and Needs
With Goods and Services
Services are tasks that people or
machines perform.
Services also satisfy some of your
wants for things you can’t see or touch.
Introduction to Business, A Look at Wants and Needs
Slide 14 of 54
Chapter
1
Satisfying Wants and Needs
With Goods and Services
In a business context wants are not
about intangible desires such as love
and respect.
Introduction to Business, A Look at Wants and Needs
Slide 15 of 54
Chapter
1
Unlimited Wants,
Limited Resources
Most people have unlimited wants for
goods and services.
The more money you make, the more
goods or services you want.
Introduction to Business, A Look at Wants and Needs
Slide 16 of 54
Chapter
1
Unlimited Wants,
Limited Resources
A resource is anything that people
can use to make or obtain what they
need or want.
Examples of resources include fuel,
timber, labor, and money.
Introduction to Business, A Look at Wants and Needs
Slide 17 of 54
Chapter
1
Unlimited Wants,
Limited Resources
The problem of unlimited wants and
limited resources affects individuals,
companies, and nations.
Introduction to Business, A Look at Wants and Needs
Slide 18 of 54
Chapter
1
Unlimited Wants,
Limited Resources
Resources limit the number of wants
people can satisfy.
Businesses and government are
influenced by the same problem.
Introduction to Business, A Look at Wants and Needs
Slide 19 of 54
Chapter
1
Deciding on Your Resources
People make the most of their
resources by making the right choices
about what to buy.
Introduction to Business, A Look at Wants and Needs
Slide 20 of 54
Chapter
1
Deciding on Your Resources
The decision-making process is a
step-by-step method to carefully
consider alternatives that result in
better choices.
Introduction to Business, A Look at Wants and Needs
Slide 21 of 54
Chapter
1
Deciding on Your Resources
The decision-making process has five
essential steps:
1. Identify the problem.
2. List the alternatives.
3. Determine the pros and cons.
4. Make the best decision.
5. Evaluate your decision.
Introduction to Business, A Look at Wants and Needs
Slide 22 of 54
Graphic Organizer
Chapter
GraphicStarting
Organizer
Economics’
Points
1
GOODS
Tangible
Material
Things
RESOURCES
Anything people can
use to make or obtain
what they want or need
SERVICES
Tasks
Performed
WANTS
Things you wish you
could have
NEEDS
Necessary wants
Introduction to Business, A Look at Wants and Needs
Slide 23 of 54
Chapter
1
Fast Review
1. Define wants, needs, goods,
services, and resources.
2. What is the difference between
public wants and private wants?
continued
Introduction to Business, A Look at Wants and Needs
Slide 24 of 54
Chapter
1
Fast Review
3. List the steps in the decisionmaking process.
Introduction to Business, A Look at Wants and Needs
Slide 25 of 54
Chapter
1
What Is Business?
Business is any activity that seeks
profit by providing goods or services to
others.
Introduction to Business, A Look at Wants and Needs
Slide 26 of 54
Chapter
1
What Is Business?
Businesses provide you with
necessities.
Businesses also provide people with
the opportunity to become wealthy.
Introduction to Business, A Look at Wants and Needs
Slide 27 of 54
Chapter
1
What Business Does
A business must organize the people
and equipment to provide the product.
People within the organization manage
the company’s resources to produce
the product.
Introduction to Business, A Look at Wants and Needs
Slide 28 of 54
Chapter
1
What Business Does
The company markets the product or
service by deciding where to sell it and
how to advertise it.
Introduction to Business, A Look at Wants and Needs
Slide 29 of 54
Chapter
1
Business’s Motivations
Profit is the amount of money left over
after a business has paid for the cost
of producing its goods and services.
Profit is the motivation for taking the
risk to start a business.
Introduction to Business, A Look at Wants and Needs
Slide 30 of 54
Chapter
1
Business’s Motivations
A business is profitable when sales are
high and costs are kept low.
Introduction to Business, A Look at Wants and Needs
Slide 31 of 54
Chapter
1
Business’s Motivations
Companies thrive on competition, or
the contest between businesses to win
customers.
Introduction to Business, A Look at Wants and Needs
Slide 32 of 54
Chapter
Figure
1.2
1
RIDING THE SEA OF CHEESES
Cheese lovers’ tastes
are changing to
specialty cheeses. While
cheddar and mozzarella
are mainstays, sheep’s
and goat’s milk cheeses
are moving straight
ahead to your nearest
deli counter.
Imagine you want to
become a cheese maker.
What kind of cheese
would you make. Why?
Introduction to Business, A Look at Wants and Needs
Slide 33 of 54
Chapter
1
Business and You
Businesses make many decisions that
impact you.
However, you also affect business.
Introduction to Business, A Look at Wants and Needs
Slide 34 of 54
Chapter
1
You as a Consumer
A consumer is a person who selects,
purchases, uses, or disposes of goods
or services.
Business is aware of your changing
needs and wants.
Introduction to Business, A Look at Wants and Needs
Slide 35 of 54
Chapter
1
You as a Consumer
Businesses affect you when they
discontinue products. The decision to
stop manufacturing products is often
because there is a decreasing
demand.
Introduction to Business, A Look at Wants and Needs
Slide 36 of 54
Chapter
1
You as a Consumer
When a company is slow to respond to
customers’ complaints and doesn’t
communicate very well, then
customers usually find another
company’s product to buy.
Introduction to Business, A Look at Wants and Needs
Slide 37 of 54
Chapter
1
You as a Wage Earner
In order to make products and provide
services, businesses hire people to
work.
In order to produce a product, the
business decides how it will be
produced.
Introduction to Business, A Look at Wants and Needs
Slide 38 of 54
Chapter
1
You as a Wage Earner
In business today, workers have more
input about how business is done.
When you’re an employee, quality of
work, decision-making skills, and input
to problems help a business flourish.
Introduction to Business, A Look at Wants and Needs
Slide 39 of 54
Chapter
1
Fast Review
1. Define business.
2. List the business activities that
happen behind every product or
service.
continued
Introduction to Business, A Look at Wants and Needs
Slide 40 of 54
Chapter
1
Fast Review
3. How does business affect you as a
consumer and as a wage earner?
Introduction to Business, A Look at Wants and Needs
Slide 41 of 54
Chapter
1
Self-Discovery in Business
Changes in the price of consumer
goods, company bankruptcies and
interest rates affect your life.
What happens in business and
government will make a difference to
the world you live and work in.
Introduction to Business, A Look at Wants and Needs
Slide 42 of 54
Chapter
1
The Value of Knowledge
When you become a business owner,
manager, or employee, you’ll need
business knowledge.
The more education you have, the
better your income.
Introduction to Business, A Look at Wants and Needs
Slide 43 of 54
Chapter
1
What Do You Like?
Learn as much now in order to make
an informed decision in the future.
Explore all the business opportunities
in order to see what is available to you
in order to satisfy your wants and
needs.
Introduction to Business, A Look at Wants and Needs
Slide 44 of 54
Chapter
1
Fast Review
1. Why is it important to understand
business today?
2. How will knowledge help your
career?
Introduction to Business, A Look at Wants and Needs
Slide 45 of 54
Chapter
1
Business Building Blocks
Evaluating Information
You often depend on information from
other people and sources.
You need to evaluate that information to
decide whether it’s reliable.
continued
Introduction to Business, A Look at Wants and Needs
Slide 46 of 54
Chapter
1
Business Building Blocks
Evaluating Information
Asking questions about the information
can help you evaluate it.
continued
Introduction to Business, A Look at Wants and Needs
Slide 47 of 54
Chapter
1
Business Building Blocks
How to Test Information
1. Does the source of information have
real knowledge about the subject?
2. What are your source’s personal
biases? How can these influence his
or her thinking?
continued
Introduction to Business, A Look at Wants and Needs
Slide 48 of 54
Chapter
1
Business Building Blocks
How to Test Information
3. Is the information as current as it
needs to be?
4. Is the information based on a large
enough sample? Does this survey
represent the majority of the people?
continued
Introduction to Business, A Look at Wants and Needs
Slide 49 of 54
Chapter
1
Business Building Blocks
How to Test Information
5. Is the information relevant to your
problem?
Introduction to Business, A Look at Wants and Needs
Slide 50 of 54
Chapter
1
Does the media sway the public’s
wants and needs?
How do environmental laws
affect some businesses?
continued
Introduction to Business, A Look at Wants and Needs
Slide 51 of 54
Chapter
1
How are colleges going to meet the
increased demand for continuing
education courses?
continued
Introduction to Business, A Look at Wants and Needs
Slide 52 of 54
Chapter
1
Why is diversity an important
stimulus to the workforce?
Introduction to Business, A Look at Wants and Needs
Slide 53 of 54
End of Chapter
1
A Look at Wants and Needs