Economic Essentials #1 What is economics?. Economics The study of the choices people make to satisfy wants and needs.

Economic Essentials #1

What is economics?

Economics

The study of the choices people make to satisfy wants and needs

What’s the difference?List 5 things you need and

5 that you want

• NEEDS • WANTS

Who decides what to make?

• Producers:

–Makers of products

–How do they decide what to make?

• Consumers:

–Those who decide to buy things

–How do they decide what to buy?

Which one do you buy?

• 75 cents • $1.25

WHY???

How do you make decisions?

• Good– physical, tangible product– shirt, car, candy bar

• Service – actions or activities – lawyer, movie, hair cut

• Which one do you spend more money on?