I want to be able to snap my fingers and someone has to fall
I want to eat a steak with a baked potato right now
I want to be able to instantly fall asleep whenever I want
I need food
I need water
I need shelter
The Decision Making Process
The decision making process consists of 5 steps. Each one plays an important roll in every big decision that you make. You do this process for most big decisions whether you think you do or not. As an example I will talk about a decision I made. I chose to eat at Taco Bell last night. To the right are the five steps it took me to make that extremely important decision.
Step 1 : Identify the situation.
I was doing homework and started to think, "My hunger is posing a problem to my thinking."
Step 2 : Identify Possible Course of Action
I then thought I could go to the fridge for food. But we were out of food, so we had to leave and get food. I thought the best course of action would be somewhere that had foodthat tingles my taste buds.
Step 3 : Determine the Pros and Cons
I thought about the pros and cons of eating at my house. Pro is I don't have to leave, the con was I wouldn't be eating anything.
The pros of eating at Taco Bell was it tastes amazing and it's really cheap and rather close to my house. The con is I have to leave my house.
Step 4 : Make a Decision
After 47 minutes of debating whether to eat out or eat in, I chose to eat at Taco Bell
Step 5 : Evaluate Your Decision
It was the best decision of my life
Difference Between Personal and Business Making Decisions
Personal Decision Making : Buying a house, or buying a table, for the majority of the time these decisions are less formal then the business making decisions.
Business Decision Making : Buying another store for your company. These are usually formal, not just, "I want this I'm gonna buy it" it's more like think about it for a week or two.
Private and Public Wants
Private Want : Wanting a new tablet for yourself or wanting a cat for your family are private wants. They are wants that will usually only effect you.
Public Wants : These are wants that an area of people. Savannah rebuilding the high school, or a bakery opening in Savannah are examples of public wants.
Raw materials like water and trees.
People who make the goods and services, like managing a business.
Things used to make goods and services, like buildings.
Things used by entrepreneurs to make a business like money.
How a Consumer Plays a Role in the Economy
So I, just like any consumer will buy things. The things that I or someone else would buy costs money. Us spending money helps the U.S. economy. When people buy things not only does the store we buy from profit, the government also does due to tax. So if there were no consumers the store will close down, and if there's no consumers then the government is not only making profit they are now wasting space on a building that is useless. Basically, if it weren't for the consumers, the government and the economy would suck a lot.
Limited Resource in Missouri
Trees are a limited resource everywhere, so that includes Missouri.
The 3 Basic Economic Questions
should be produced?
should it be produced?
would share in what's produced?
3 Types of Economies
A market economy is an economic system in which economic decisions are made in the marketplace.
A command economy is an economic system where a central authority makes the important economic decisions
An economy that contains both private and public enterprises
Equilibrium is the place where supply and demand meet. It's basically where all companies want to get there and stay forever.