SATISFYING NEEDS AND WANTSECONOMICSBy L. Durant-Adkins

September 2009

WHAT IS ECONOMICS? Production and distribution and consumption

of goods and services.

GOODS

Goods are things you can see and touch

Goods are products to purchase to meet wants and needs

Examples are:FruitSkirt/shirtCell phonesFootballsHair bowsPansPencilsPaper

Goods

SERVICES Are activities that are

consumed at the same time they are produced.

These services are INTANGIBLE Which means no

physical characteristics Services are provided

at the same time you want to consume them

Something that is done for us as a SERVICE.

Example: Haircuts Braiding hair Loc hair Car repair Dentist appointment Medical doctor

appointment

NEEDS THINGS THAT ARE REQUIRED

FoodClothingShelter

Other NeedsEducationEmploymentSafety

IncludingTransportationMedical Care

WANTS(THINGS THAT ADD COMFORT) Designer clothing CDs Movies Small apartment

Other Wants Large house Vacation homes Sailboats Luxury vehicle

DO NEEDS AND WANTS END?

CHOICES

Forces you to make choices or decisions among the alternative

Choosing things you WANT the most or can AFFORD

Example: Your part-time pay check does not allow you to purchase a pair of shoes and eat pizza and go to a movie with some friends.

What decision will you decide upon?

Choosing which wants among several will you be satisfied and to make a logical decision?

Scarcity Economic Decision-Making

CHOICES

Giving up something to have something else

Example: Rather eat pizza and a movie with friends than buy the shoes

Is the value of the next best alternative

Example: Buying a “no brand” shoe than a “named brand shoe”

Trade-off Opportunity Cost

CHOICESBusiness Consumers

REVIEWING EXCEL

COLLECTING DATA IN EXCEL SPREADSHEET

A B C D

1 IPOD $158.00

2

3

What Cell is IPOD in?