Intro To Business Chapter 1 Study Guide

What are needs?

• Basic requirements for survival

• Wants or desires

• Luxury items

• Unnecessary expenses

Wants are:

• Basic needs for survival

• Desires that are not essential

• Mandatory requirements

• Unavoidable necessities

Why are needs and wants unlimited?

• Because resources are limited and cannot satisfy all human desires.

• Because people are never satisfied with what they have.

• Because new needs and wants are constantly created.

• All of the above.

We satisfy needs and wants by:

• consuming goods and services

• ignoring them

• complaining about them

• wishing for them

What are the three economic resources?

• Land, Labor, Capital

• Money, Time, Energy

• Goods, Services, Products

• Supply, Demand, Market

Economic resources are used to:

• produce goods and services

• increase population

• decrease inflation

• reduce unemployment

Who is responsible for economic resources?

• The government

• Private sector

• Non-profit organizations

• International bodies

Resources are limited because:

• They are infinite and can be replenished easily.

• They are finite and cannot be replenished easily.

• They are not needed by humans.

• They are always available in abundance.

We have to make economic decisions because:

• resources are unlimited

• resources are limited

• we want to spend more

• we want to save more

The six steps of the economic decision making process are:

• Identify the problem, Gather information, Develop alternatives, Evaluate alternatives, Make a decision, Implement and review the decision

• Identify the problem, Develop alternatives, Make a decision, Implement the decision, Review the decision, Gather information

• Gather information, Identify the problem, Develop alternatives, Make a decision, Implement the decision, Review the decision

• Develop alternatives, Identify the problem, Gather information, Make a decision, Implement the decision, Review the decision