Chapter 1 Economic Decisions And Systems. 1-1 Satisfying Needs & Wants Goals: –Explain the...
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Transcript of Chapter 1 Economic Decisions And Systems. 1-1 Satisfying Needs & Wants Goals: –Explain the...
![Page 1: Chapter 1 Economic Decisions And Systems. 1-1 Satisfying Needs & Wants Goals: –Explain the difference between needs & wants –Distinguish between goods.](https://reader036.fdocuments.in/reader036/viewer/2022081416/56649e1a5503460f94b08100/html5/thumbnails/1.jpg)
Chapter 1
Economic Decisions
And
Systems
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1-1 Satisfying Needs & Wants
• Goals:
–Explain the difference between needs & wants
–Distinguish between goods and services
–Describe the types of economic resources
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Chapter 1 - Economic Decisions
*Needs Vs. Wants
Needs - Necessary for survival
i.e. food, shelter, clothes
Wants - Not necessary for survival - bring comfort
i.e. stereo, television, chewing gum
*Abraham Maslow’s Hierarchy of Needs
Self Actualization Esteem Social Safety
Physiological
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Maslow’s Hierarchy of Needs
PHYSIOLOGICAL OR SURVIVAL NEEDS
MOST NEEDS HAVE TO DO WITHSURVIVAL PHYSICALLY AND
PSYCHOLOGICALLY
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PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
ON THE WHOLE AN INDIVIDUALCANNOT SATISFY ANY LEVELUNLESS NEEDS BELOW ARE
SATISFIED
Maslow’s Hierarchy of Needs
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PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND BELONGINGNESS NEEDS
Maslow’s Hierarchy of Needs
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PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND BELONGINGNESS NEEDS
ESTEEM NEEDS
Maslow’s Hierarchy of Needs
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SELF-ACTUALIZATION
NEEDFOR
MASLOW EMPHASIZES NEED FOR SELF
ACTUALIZATION ISA HEALTHY INDIVIDUAL’S
PRIMEMOTIVATION
Maslow’s Hierarchy of Needs
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Maslow’s Hierarchy of Needs
SELF-ACTUALIZATION
NEEDFOR
MASLOW EMPHASIZES NEED FOR SELF ACTUALIZATION IS
A HEALTHY INDIVIDUAL’S PRIMEMOTIVATION
SELF-ACTUALIZATION MEANS ACTUALIZING
ONE’S POTENTIAL BECOMING ALL ONE ISCAPABLE OF BECOMING
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Maslow’s Hierarchy of Needs
PHYSIOLOGICAL OR SURVIVAL NEEDS
SAFETY NEEDS
LOVE, AFFECTION, AND BELONGINGNESS NEEDS
ESTEEM NEEDS
SELF-ACTUALIZATION
NEED
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Goods & Services
• Goods - things you can see and touch = tangible– T-Shirts, football, CDs
• Services - Efforts provided by people, equipment, or technology– Haircut, movies in a theatre
• Economic Resources (Factors of Production) - The means through which goods and services are produced (3 types)
– Natural Resources - Raw materials supplied by nature• Iron ore, gold, water, fish, etc.
– Human Resources - People who work to produce goods and services • Laborers
– Capital Resources - Tools, equipment, buildings that are used to produce goods and services
• Factories, computers, trucks, etc.• Money $ $ $ (needed to run a business)
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Key Concepts
• Pg. 11• Answer #1-5
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Assignment• When you are done, research each resource
that is scarce…describe the resource, why it is scarce, and statistics related to that resource.– Natural – at least 2 slides w/ pics– Human – at least 2 slides w/ pics– Capital – at least 2 slides w/ pics
• PowerPoint – AT LEAST 6 slides• Include the site you used. Cite your source!
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1-2 Economic Choices
• Goals:– Understand the basic economic problem
– Explain the steps in the decision-making process
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The Basic Economic Problem
SCARCITY - THE BASIC ECONOMIC PROBLEM!PRIORITIZE!
• Scarcity – not having enough resources to satisfy every need– Forces us to make choices– Implement a budget
• Economic Decision Making – the process of choosing which wants, among several options, will be satisfied.
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Choices, choices, choices
• Trade – 0ff – when you give up something to have something else…
• Opportunity cost – the value of the next-best alternative that you did not choose.
– The benefit you get from your choice should be greater than the benefit from the next-best choice.• Businesses carefully calculate the opportunity
costs of decisions before making a decision about how money will be invested
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Decision-Making Process• Six Steps
– 1. Define the Problem• What is the central issue?• Must be defined in order to make a decision that will lead
to a solution– 2. Identify Choices
• How many are there?• What is the opportunity cost?
– The forgone benefits. What you are giving up by choosing one situation over another. i.e. Movie vs.bowling. Movie wins, bowling is the opportunity cost.
– 3. Evaluate Choices• Look at the advantages and disadvantages of each
choice/alternative
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Decisions, Decisions, Decisions
– 4. Choose One• The best one for the particular time
– 5. Act on Your Choice• Just do it!
– 6. Review/Evaluate Your Decision• Did you define the problem correctly?• Did you look at all the available choices?• Did you act at the necessary time?
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Decisions, Decisions, Decisions• Share a decision with me that you had to make
over the weekend.• Describe, for each decision step, what
happened1. Define the issue/problem2. Identify choices. What choices were available to
you?3. Evaluate choices. What were the pros and cons of
each option?4. What did you choose to do (choose one)?5. Act on it – no explanation needed6. How did it go (evaluate the decision)?