business 1 economic decisions

Business
An establishment or enterprise that supplies consumers with goods and services in exchange for payment in some form
Needs
The things that are essential for survival
Wants
Things that are not necessary for survival but add comfort and pleasure to our lives
Unlimited wants
Satisfying one want that leads to needing several other wants
Good
Things that can be seen or touched
Services
Things that satisfy our wants through the efforts of others or equipment
Economic resources or factors of production
The means through which goods and services are produced
Natural resources
Raw materials that come directly from nature
Human resources or labor
People who work to produce goods and services
Capital resources
Tools, equipment, an buildings that are needed to produce a good or service
Basic economic problem or scarcity
Meeting unlimited wants with limited resources
Economic decision making
The process of choosing which wants, among several wants being considered, will be satisfied
6 step decision making process
1) define the problem
2) identity the choices
3)evaluate the advantages and disadvantages
4)choose
5)act on your choice
6)review your decision