Transcript Intro to Business Chapter 1 Economic Decisions and Systems

INTRO TO BUSINESS
CHAPTER 1
ECONOMIC DECISIONS AND SYSTEMS
1-1
1-2
1-3
1-4
Satisfying Wants and Needs
Economic Choices
Economic Systems
Supply and Demand
1-1 SATISFYING NEEDS AND WANTS
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Needs –
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Wants –
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
Most products and services you purchase do more
than meet your needs.
Needs and Wants are __________________.
1-1 SATISFYING NEEDS AND WANTS
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Goods –

Services -
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Goods and services are consumed by both
____________ and _____________.
The U.S. is the largest producer of goods and
services in the world. Americans consume more
than any other country.
1-1 SATISFYING NEEDS AND WANTS

Economic Resources – the means through
which good and services are produced; also called
_____________ ___ ____________.
___________Resources – raw materials
supplied by nature; limited
 _________ Resources – people who produce
goods and services
 _________ Resources – products and money
used in the production of goods and services
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Note: All economic resources have a
_____________ ____________
1-2 ECONOMIC CHOICES
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Basic Economic Problem:
____________ Wants and Needs
 ___________ Economic Resources

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
Scarcity –
Scarcity forces you to make ____________ among
alternatives.
1-2 ECONOMIC CHOICES
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Economic Decision-Making –
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Trade-off –

Opportunity Cost –

The benefit you get from your choice should be
greater than the benefit of the next-best choice.
1-2 ECONOMIC CHOICES

The Decision-Making Process
1.
2.
3.
4.
5.
6.
1-3 ECONOMIC SYSTEMS
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Each __________ must decide how their available
resources will be used to meet the needs and
wants of their __________.
 What goods and services will be produced?


How will the goods and services be produced?


What needs and wants will be satisfied with
the goods and services produced?
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1-3 ECONOMIC SYSTEMS

Economic System –

Command Economy –

Market Economy –

Traditional Economy –

Mixed Economy –
1-3 ECONOMIC SYSTEMS

U.S. Economic System

Capitalism –

Based on 4 Basic Principles
1.
2.
3.
4.
1-4 SUPPLY AND DEMAND
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Consumer –

Producers –

Producers determine what products and services will
be available, the needs and wants they will try to
satisfy, and the prices they want to receive.
1-4 SUPPLY AND DEMAND
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Consumers set Demand –


As price increases, demand ___________
Producers establish Supply –

As price increases, supply ___________
1-4 SUPPLY AND DEMAND
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Determining Price

Factors influencing demand:



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
Factors influencing supply:




Market Price –