UNDERSTANDING

Economic S y s t e m s

https://flic.kr/p/hv8sMK

Satisfying

Needs & Wants

https://flic.kr/p/4xwv2Y

Part 1:

Something you must have to survive

https://flic.kr/p/bLnsgF

Something you desire to have

https://flic.kr/p/dfssw5

Needs and Wants

are satisfied via

businesses offering

goods and services.

https://flic.kr/p/7LKBQp

Goods Tangible items sold to

customers/consumers.

https://flic.kr/p/bJVEZz

Services Intangible activities

businesses offer to

perform for their

customers/consumers.

https://flic.kr/p/j3i4dM

Resources

For creating

Goods & Services

https://flic.kr/p/CncyC

N at u r a l

R es o u rc es

https://flic.kr/p/qaACNF

Raw materials found in the natural world.

Ca p i ta l

R es o u rc es

https://flic.kr/p/9qBqTk

The tools, equipment, and buildings that

are used to produce goods and services.

H U M A N

R es o u rc es

https://flic.kr/p/8zVpDa

The people who contribute physical and

mental energy to the production process.

T h e Bas i c E c o n o m i c P r o b l e m

https://flic.kr/p/a4VVQT

Exists because of limited resources for satisfying unlimited wants and needs

S ca rc i ty https://flic.kr/p/7Jcr9c

The limitation of resources to fulfill needs and wants.

Ec o n o m i c D e c i s i o n M a k i n g

https://flic.kr/p/ahwGjA

The process of choosing which wants, among several options, will be satisfied.

T r a d e O ff https://flic.kr/p/5StUPK

The process of giving up something for gaining something else.

O p p o r t u n i t y C o s t

https://flic.kr/p/a4b7bd

The value of the next-best alternative that you did not choose.