Business Concepts Chapter 1-Economic Decisions

Things that are necessary for survival, such as food, clothing, and shelter.

• Needs

• Wants

• Monopoly

• Scarcity

Things that are not necessary for survival but add comfort and pleasure to our lives.

• Needs

• Wants

• Monopoly

• Scarcity

things you can see and touch

• Services

• Mass Production

• Goods

• Anti-Trust Laws

Things that satisfy our wants through the efforts of other people or equipment.

• Goods

• Services

• Natural Resources

• Products

The means through which goods and services are produced

• Economic Resources (Factors of Production)

• Needs

• Services

• Wants

Raw materials supplied by nature

• Labor

• Human Resources

• Capital Resources

• Natural Resources

People who work to produce goods and services

• Human Resources (Labor)

• Natural Resources

• Capital Resources

• Capital

Tools, equipment, and buildings used in producing goods and services.

• Labor

• Human Resources

• Capital Resources (Capital)

• Natural Resources

The basic economic problem that arises because people have unlimited wants but resources are limited. The problem business, government, and individuals face.

• Unemployment

• Wants

• Needs

• Scarcity

The process of choosing which want, among several wants being considered, will be satisfied.

• Process of Elimination

• Economic Decision Making

• Shopping

• Economics