Chapter 1 Revision

SECTION 1.1 & 1.2

Define the following with an example
•Wants - are things that you do not have to have to survive, but would like to have. Example:
laptop.
•Needs: are things that you must have in order to survive. Example: water.
•Public wants: are wants that are widely shared by many people. Example: public libraries.
•Private wants: Individuals or small groups of people have private wants. Example: A new sofa.
•Goods: physical products. Example: sneakers.
•Services: tasks that businesses perform for consumers. Example: getting a blow dry at the salon.
•Resources: are items that people can use to make or obtain what they need or want. Example:
money.
Define the following
•Business- any commercial activity that seeks profit by providing goods and services to others in
exchange for money. Example: Zara.
•Profit- the money left over after a business has paid the cost of providing its goods and services.
•Competition: the contest between businesses to win customers.
•Market research: the act of gathering and analyzing information about the wants, needs, and
preferences of consumers in a certain market.
•Consumer: a person who uses goods or services.
Make a list of the decision-Making
Process
1. Identify the situation
2. Identify possible courses of action
3. Determine the pros and cons
4. Make a decision
5. Evaluate your decision
True or False
•Most people have limited wants for goods and services (F)
•Labor is an example of resource (T)
•Every time you buy something you must use the decision-making process (F)
•Making a profit is not the main motive of business (F)
•Evaluating your decision is the last step of the decision making process (T)
•wants ands needs have the same priority (F)
Fill in the blank
competition want demand needs analyze consider modify affect evaluate

•Market research provides information that can help a business ….analyze.. demand.
•You should be able to …evaluate… your own work.
•When your product is not selling well, you should try to …modify.. it according the consumer’s
demands.
•The …demand... for a product determines its price.