Economic Decisions ReviewBy Mr. Soule

Difference between Needs and Wants

Needs: -are essential to live

-Food-Cloths-Shelter

Wants: -add to the quality of life

-Cars-Big house-New TV-Ipad-Etc.…

Needs and wants are unlimited

How do people satisfy their wants and needs?

People satisfy their wants and needs by purchasing and consuming goods and services.

What is the difference between Goods and Services

Goods These are things

that you can see and touch.-Ipad-laptop-cloths-car

Services These are satisfied

by the efforts of other people or equipment.-Hairstylist-Arcade games-Music lesson

Economic ResourcesNatural resourcesHuman resourcesCapital resources

Resources are limited

Natural Resources This is all material that comes from the

Earth-Iron-Gold-Oil-Copper are all examples

All products in the class are made up of natural resources.

Human Resources The people who work to produce the goods

and services.-Farmers-Factory workers-Police-Insurance Reps

Remember you are a human resource and you will be a valuable asset for a company

Capital Resources These are the tools, equipment, and the

buildings that are used to produce the goods and services.

-Office Buildings-Computers-Delivery Trucks

Capital is also another term for money to run a business

Limited Resources There is a limited amount of resources

that we can have. No one has unlimited amount of capital

or resources Scarcity affects everyone

-Basic economic problem- unlimited wants to limited resources.

Decision Making Process Define the problem Identify the choice Evaluate the advantage and

disadvantage of each choice. Choose Act on your choice Review your decision