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1.
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Needs
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Things that are required in order to live
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2.
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Wants
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Things that add comfort and pleasure to
your life
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3.
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Goods
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Things that you can see and touch.
Purchased to meet your needs and wants.
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4.
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Services
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Activities that are consumed at the same time they are produced. Ex. hair cut
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5.
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Economic Resources (Factors of Production)
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Means through which goods and services are produced. (natural resources, human resources, capital resources).
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6.
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Natural Resources
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Raw materials supplied by nature.
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7.
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Human Resources
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People producing goods and services.
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8.
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Capital Resources
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The products and machines used to produce the product.
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9.
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Scarcity
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Not having enough resources to satisfy every need
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10.
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Economic decision-making
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The process of chosing which wants will be satisfyed. Ex: new phone vs. new outfit
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11.
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Tradeoff
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When you give up something to get something else.
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12.
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Opportunity Cost
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The value of the next best alternative that you didnt choose.
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13.
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Decision Making Process
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1. Define the Problem
2. Identify the Choices
3. Evaluate the adv./dis adv.
4. Choose One
5. Act on your choice (do it)
6. Review
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