Wants and Needs
What are Wants?
Wants are things that you do not have to have to survive, but would like to have.
Define Business
Any commercial activity that seeks profit by providing goods and services to others in exchange for money.
Define Scarcity
The lack of resources is called Scarcity
Define Economics
The study of how individuals and groups of individuals strive to satisfy their needs and wants by making choices.
Describe why it is important to understand how business impacts you.
answer varies
What are Needs?
Needs are things that you must have in order to survive.
What is the motive of Business?
To make a profit!
True or False: Recourse are the items that go into the making of goods and services.
True
What are the Basic Economic Questions?
What should be produced?
How should it be produced?
Who should produce it?
List five different natural resources
coal, trees
answers vary
Whats the difference between Private and Public Needs?
Private Wants: individuals and groups of people ( family or business) have wants.
Public Wants: Wants that are widely shared my many.
Define Profit
Any money left over after a business has paid the cost of providing its goods and services
Give an example of Limited Supply.
A restaurant owner may forgo plans for a costly new décor to have more money to put into kitchen equipment.
What is a Market Economy?
An economic system in which economic decisions are made in a marketplace.
Can also be called private enterprise system, free enterprise system, or capitalism
List the steps in the decision-making process.
•Identify the Problem
•Identify possible courses of action
•Determine the pros and cons
•Make a decision
•Evaluate your decision
What are Goods?
Goods are physical products.
True or False: The wealth of a business benefits a community because business pay taxes and provide jobs.
True
Name the Four Factors of Production.
Natural Resources, Labor, Capital, Entrepreneurial
What is Command Economy?
An economic system in which a central authority makes the key economic decisions.
Know as Socialism
Identify one similarity and one difference between labor and entrepreneurial resources.
Answer Varies
What are Services?
Services are tasks that businesses perform for customers.
Define Competition
Contest between businesses to win customers. It is a direct response to wants and needs.
True or False: Entrepreneurs do not encounter risk.
False
What is a Mixed Economy?
An economy that contains both private and public enterprises.
It contains elements from capitalism and socialism.
Why do all nations face the problem of scarcity?
Answer Varies