Satisfying Needs & Wants (1.1) & Economic Choices (1.2) IBM9-17-12

Satisfying Needs & Wants Satisfying Needs & Wants (1.1) & Economic Choices (1.1) & Economic Choices

(1.2)(1.2)IBM IBM

9-17-129-17-12

Warm-up and ObjectivesWarm-up and Objectives

Students will learn to distinguish Students will learn to distinguish between wants and needs and between wants and needs and goods and services.goods and services.

Students will describe the types Students will describe the types of economic servicesof economic services

Warm-up- What are wants and Warm-up- What are wants and needs? Is there a difference needs? Is there a difference between the two?between the two?

Satisfying Needs and WantsSatisfying Needs and Wants

NeedsNeeds- things you have to have - things you have to have in order to survive such as food, in order to survive such as food, water, shelter, & clothing. Ex. water, shelter, & clothing. Ex. salad, water, shirt, shelter.salad, water, shirt, shelter.

Wants- Wants- a want is something that a want is something that you desire but that you do not you desire but that you do not necessarily need to live. Ex. necessarily need to live. Ex. Latest fashion, CD, movie, Wii, Latest fashion, CD, movie, Wii, IPhone 5.IPhone 5.

Values and GoalsValues and Goals

Needs and wants are determined by Needs and wants are determined by one’s values and goalsone’s values and goals

ValuesValues are the beliefs and practices are the beliefs and practices in your life that are very important to in your life that are very important to you. you.

A A goal goal is a destination, something is a destination, something you want or need, which you acquire you want or need, which you acquire by taking certain steps.by taking certain steps.

What are some of your values?What are some of your values?

Values and GoalsValues and Goals

Examples of how values, goals, Examples of how values, goals, wants, and needs are connected. wants, and needs are connected.

I value education/ want to make a I value education/ want to make a difference in my community. I also difference in my community. I also need to earn a living to support need to earn a living to support myself. Thus, I decided to get good myself. Thus, I decided to get good grades, go to college, and pursue a grades, go to college, and pursue a career in Education.career in Education.

Goods vs. ServicesGoods vs. Services

You may satisfy your needs and You may satisfy your needs and wants by purchasing goods and wants by purchasing goods and services. services.

A A goodgood is something that you can is something that you can see and touch. Ex. Magazine, pillow, see and touch. Ex. Magazine, pillow, IPad.IPad.

A service is an activity that is A service is an activity that is consumed at the same time it is consumed at the same time it is purchased. Services are intangible. purchased. Services are intangible. Ex. Hair salons, nail salons, Spa, Ex. Hair salons, nail salons, Spa, etc. etc.

Goods and Services for Goods and Services for Business and ConsumersBusiness and Consumers

Goods and Services can be Goods and Services can be purchased by business or by purchased by business or by consumers.consumers.

Some goods and services are Some goods and services are unique for business and unique for business and consumers.consumers.

Some goods and services are Some goods and services are similar but meet different needs.similar but meet different needs.

Goods and ServicesGoods and Services

Some businesses offer both Some businesses offer both goods and services. goods and services.

Ex. Rays the Steaks, Hair Ex. Rays the Steaks, Hair salons that sale hair products salons that sale hair products and style clients, nail salons that and style clients, nail salons that sell polish and fix nails. sell polish and fix nails.

Can you name any others?Can you name any others?

Types of Economic ResourcesTypes of Economic Resources

Did you know that the US economy Did you know that the US economy is the largest producer and is the largest producer and consumer of goods and services in consumer of goods and services in the world. the world.

Few goods and services are free and Few goods and services are free and individuals do not make most of the individuals do not make most of the products and services they consume products and services they consume as they did years ago.as they did years ago.

So What happens?So What happens?


People use Economic resources to People use Economic resources to get the goods and services they get the goods and services they want and need. want and need.

Economic resources, also called Economic resources, also called factors of production, factors of production, are the means are the means by which goods and services are by which goods and services are produced. produced.

The three types of economic The three types of economic resources: natural, human, & capital resources: natural, human, & capital resources. resources.


Natural resources are raw materials Natural resources are raw materials supplied by nature.supplied by nature.

Ex. Oil, minerals, nutrients, air, river, Ex. Oil, minerals, nutrients, air, river, lakes and oceans. lakes and oceans.

ALL products you consume begin ALL products you consume begin with one or more natural resources.with one or more natural resources.

Think about a can of Chicken Noodle Think about a can of Chicken Noodle Soup? Which natural resources does Soup? Which natural resources does it contain? it contain?


Human resources and the people Human resources and the people that produce goods and services.that produce goods and services.

Ex. Farmers raise livestock and Ex. Farmers raise livestock and crops, factory workers and engineers crops, factory workers and engineers process and package products, process and package products, Truck drivers and grocery store Truck drivers and grocery store employees are responsible for employees are responsible for delivering and making products delivering and making products available to consumers. available to consumers.


People (human resources) need People (human resources) need tools and equipment to convert tools and equipment to convert natural resources into products and natural resources into products and services. services.

Capital resources are the money and Capital resources are the money and equipment used in the production of equipment used in the production of goods and services. goods and services.

Ex. Money, buildings, equipment, & Ex. Money, buildings, equipment, & suppliessupplies

Limited ResourcesLimited Resources

All economic resources are limited All economic resources are limited so products and services that can be so products and services that can be produced are also limited. produced are also limited.

If resources are used to produce one If resources are used to produce one product they will not be available for product they will not be available for the production of something else. the production of something else.

Individuals, businesses, & countries Individuals, businesses, & countries compete for access to and compete for access to and ownership of economic resources. ownership of economic resources.

Resources that are in high demand, Resources that are in high demand, or those that are limited in supply will or those that are limited in supply will command higher prices. command higher prices.

Closure ActivityClosure Activity

Name two of your wants and two of Name two of your wants and two of your needs.your needs.

What is the difference between a What is the difference between a good and servicegood and service

Does the service industry supply Does the service industry supply more needs or wants?more needs or wants?

What natural resources are found What natural resources are found near your home?near your home?

Give two examples of capital and Give two examples of capital and human resources?human resources?

Economic ChoicesEconomic Choices

Students will:Students will: Understand the basic economic Understand the basic economic

problemproblem Explain the steps of the decision Explain the steps of the decision

making process.making process.

The Basic Economic ProblemThe Basic Economic Problem

Scarcity- Not having enough Scarcity- Not having enough resources to satisfy every need and resources to satisfy every need and want. want.

Scarcity forces everyone to make Scarcity forces everyone to make choices or decisions among the choices or decisions among the alternatives.alternatives.

Ex. If you earn $75/week and you Ex. If you earn $75/week and you spend that on a new pair of shoes, spend that on a new pair of shoes, then you may not enough for a then you may not enough for a movie and pizza with friends.movie and pizza with friends.

Choices, Tradeoffs, and Choices, Tradeoffs, and Opportunity CostOpportunity Cost Economic Decision Making-process Economic Decision Making-process

of choosing which wants and needs, of choosing which wants and needs, among several options, will be among several options, will be satisfied.satisfied.

When you give up something for When you give up something for something else you are making a something else you are making a tradeoff. tradeoff.

The opportunity cost is the value of The opportunity cost is the value of the next best alternative that you did the next best alternative that you did not choose.not choose.

Choices, Tradeoffs, and Choices, Tradeoffs, and Opportunity CostOpportunity Cost Ex. You may give up working full-Ex. You may give up working full-

time to pursue a college degree. If time to pursue a college degree. If you could make $25K from working you could make $25K from working $25k is your opportunity cost.$25k is your opportunity cost.

Remember that the benefit you get Remember that the benefit you get from your choice should always be from your choice should always be greater than the benefit from the next greater than the benefit from the next best choice.best choice.

The Decision-Making ProcessThe Decision-Making Process

The decision-making process The decision-making process has 6 steps. has 6 steps.

Define the problem-the problem Define the problem-the problem must be clearly defined in order must be clearly defined in order to make a decision. to make a decision.

Identify the choices-it is Identify the choices-it is common for you to face choices common for you to face choices with many alternatives.with many alternatives.


Evaluate the advantages and Evaluate the advantages and disadvantages of each choice-disadvantages of each choice-its always helpful to write down its always helpful to write down each choice and the adv. & each choice and the adv. & disadv. to that choice.disadv. to that choice.

Chose One-Select the choice Chose One-Select the choice that you believe will be the best that you believe will be the best for you at this particular time.for you at this particular time.


Act on your choice- Once you Act on your choice- Once you have selected a choice, do have selected a choice, do whatever it is that you have whatever it is that you have chosen.chosen.

Review your decision-After you Review your decision-After you experience the results of your experience the results of your choice, it is important to review choice, it is important to review your choice.your choice.

DECISIONSDECISIONS YOUR PERSONAL, CAREER, AND YOUR PERSONAL, CAREER, AND

FINANCIAL DECISIONS ARE ALL FINANCIAL DECISIONS ARE ALL INTERWOVEN.INTERWOVEN.

SOME TIMES YOU MAY NOT SOME TIMES YOU MAY NOT KNOW THE IMPACT OF YOUR KNOW THE IMPACT OF YOUR DECISIONS UNTIL SOME TIME DECISIONS UNTIL SOME TIME HAS PASSED.HAS PASSED.

MAKING NO DECISION IS MAKING NO DECISION IS ACTUALLY MAKING A DECISION, ACTUALLY MAKING A DECISION, A DECISION TO ACCEPT A DECISION TO ACCEPT WHATEVER HAPPENS.WHATEVER HAPPENS.

Closure QuestionsClosure Questions

True or False-The basic economic problem True or False-The basic economic problem is that consumers have too many is that consumers have too many resources to chose from.resources to chose from.

What is economic decision-making?What is economic decision-making? Describe a tradeoff that you have made Describe a tradeoff that you have made

recently.recently. Yorktown needs computer for its business Yorktown needs computer for its business

program. They are deciding between program. They are deciding between desktop and laptop. If Yorktown chooses desktop and laptop. If Yorktown chooses laptops what is the opportunity cost?laptops what is the opportunity cost?

What is the 1What is the 1stst and last step in the decision- and last step in the decision-making process?making process?

Why should you evaluate the advantages Why should you evaluate the advantages and disadvantages of your choices. and disadvantages of your choices.

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Satisfying Needs & Wants (1.1) & Economic Choices (1.2) IBM9-17-12