Chapter 1

Chapter 1The Economy and You

Chapter 1 Section 1.1

THE BIG IDEA…Businesses make money by offering goods and services to satisfy the wants and needs of consumers and other businesses. In this way, wants and needs drive the U.S. Economy.

Chapter 1 Section 1.1 VOCABULARY

GoodsPhysical products.

ServicesTasks business preform for other people.


Good or service?


Good or service?


Good or service?


Good or service?


Good or service?


WantsThings that you do not have, but would like to have.

NeedsThings that you must have in order to survive.


Need or want?


Need or want?


Need or want?


Need or want?


Need or want?


Needs and Wants…determine what products and services businesses provide.


Public vs. PrivatePrivate Want Public Want

Usually satisfied by you as the consumer or business.

Usually local, state, and federal governments satisfy public wants.


Public vs. PrivatePrivate Want Public Want

• New kitchen table• New shoes• New computer

system

• Highways• Public library• Parks• Hospital


ResourcesItems that people can use to make or obtain what they need or want.


Resources


ResourcesNo one has enough resources to satisfy all their needs and wants.

Make the most of your resources by making smart and careful decisions about what you buy.


THE BIG IDEA…Business seek profit by providing goods and services in exchange for money. Companies thrive on competition, the contest between businesses to win customers. Competition and profit motivate business to continually strive to find new ways to satisfy customers.


BusinessAny commercial activity that seeks profit by providing goods and services in exchange for money.

ProfitThe money left over after a business has paid the cost of providing its goods and services.


Businesses


The motive of a business?

TO MAKE A PROFIT!It’s all about the money.

• Without a profit, a company cannot survive.• The wealth created by businesses benefits the

entire community because businesses pay taxes and provide jobs.


CompetitionThe contest between businesses to win customers.

Market ResearchThe act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market.


Competition


Competition happens when…businesses continually try to improve their products and services and do better than one another.


How do businesses compete?

OfferQUALITY Products

OfferOUTSTANDING

Service

OfferCOMPETITIVE

Prices


The success of a business depends on how well key activities are coordinated, managed, and performed.

Business ActivitiesIdentify opportunities for products and or/ services.

Evaluating the demand for products and/or services.

Managing the production of goods and/or services.

Marketing the goods and/or services.

Keeping records to satisfy government requirements and improve processes.


Some business activities…Should be supported by MARKET RESEARCH.


Market Research


ConsumerA person who uses goods or services.


TARGET MARKETA group of people identified as those most likely to become customers.

Task: Make a list of 5 shoe stores. List the target market next to each shoe store.


Task: Make a list of 5 shoe stores. List the target market next to each shoe store.

Shoe Store Target Market

Journey’s

Dick Sporting Goods

Payless

Dillards

Famous Footwear

Chapter 1

Economy & Finance

goods andor services

keyandor services

goods andservices

profit byproviding goods

public wants

servicestasks business

business activitiesshould

shoe stores