1. Chapter 1
The Economy and You

2. 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.

3. Chapter 1 Section 1.1 VOCABULARY
Goods
Physical products.
Services
Tasks business preform for other people.

4. Chapter 1 Section 1.1
Good or service?

5. Chapter 1 Section 1.1
Good or service?

6. Chapter 1 Section 1.1
Good or service?

7. Chapter 1 Section 1.1
Good or service?

8. Chapter 1 Section 1.1
Good or service?

9. Chapter 1 Section 1.1 VOCABULARY
Wants
Things that you do not have, but would like to
have.
Needs
Things that you must have in order to survive.

10. Chapter 1 Section 1.1
Need or want?

11. Chapter 1 Section 1.1
Need or want?

12. Chapter 1 Section 1.1
Need or want?

13. Chapter 1 Section 1.1
Need or want?

14. Chapter 1 Section 1.1
Need or want?

15. Chapter 1 Section 1.1 VOCABULARY
Needs and Wants…
determine what products and
services businesses provide.

16. Chapter 1 Section 1.1 VOCABULARY
Public vs. Private
Private Want Public Want
Usually satisfied by Usually local, state,
you as the and federal
consumer or governments
business. satisfy public
wants.

17. Chapter 1 Section 1.1 VOCABULARY
Public vs. Private
Private Want Public Want
• New kitchen table • Highways
• New shoes • Public library
• New computer • Parks
system • Hospital

18. Chapter 1 Section 1.1 VOCABULARY
Resources
Items that people can use to make or obtain what
they need or want.

19. Chapter 1 Section 1.1 VOCABULARY
Resources

20. Chapter 1 Section 1.1 VOCABULARY
Resources
No 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.

21. Chapter 1 Section 1.2
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.

22. Chapter 1 Section 1.2 VOCABULARY
Business
Any commercial activity that seeks profit by
providing goods and services in exchange for
money.
Profit
The money left over after a business has paid the
cost of providing its goods and services.

23. Chapter 1 Section 1.2
Businesses

24. Chapter 1 Section 1.2
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.

25. Chapter 1 Section 1.2 VOCABULARY
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.

26. Chapter 1 Section 1.2
Competition

27. Chapter 1 Section 1.2
Competition happens when…
businesses continually try to improve their
products and services and do better than one
another.

28. Chapter 1 Section 1.2
How do businesses compete?
Offer Offer Offer
QUALITY OUTSTANDING COMPETITIVE
Products Service Prices

29. Chapter 1 Section 1.2
Business Activities
The success of a Identify opportunities for products
business depends and or/ services.
Evaluating the demand for products
on how well key and/or services.
activities are Managing the production of goods
coordinated, and/or services.
Marketing the goods and/or services.
managed, and
Keeping records to satisfy
performed. government requirements and
improve processes.

30. Chapter 1 Section 1.2
Some business activities…
Should be supported by MARKET RESEARCH.

31. Chapter 1 Section 1.2
Market Research

32. Chapter 1 Section 1.2 VOCABULARY
Consumer
A person who uses goods or services.

33. Chapter 1 Section 1.2 VOCABULARY
TARGET MARKET
A 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.

34. Chapter 1 Section 1.2 VOCABULARY
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