The Economy and You: Unit 1
The Economy and You: Unit 1
The Economy and You: Unit 1
Unit Overview
Introduce the Unit
The Economy and You
Introduce the unit by
describing the main con-
cepts of each chapter in
the unit.
Unit 1 is about economic
activity and how it affects
everyday life.
Chapter 1 explains the
difference between wants
and needs and examines
how businesses satisfy con-
sumer wants and needs.
Chapter 2 introduces scar-
city and the four factors of
production and describes
economic systems.
Chapter 3 describes types
of economic measure-
ments and explains the four
phases of the business
cycle.
Chapter 4 explains the
importance of ethics in
business and describes the
social responsibility of
business.
OUT OF TIME?
If class time is too short
to cover all of the chap-
ters in this unit, have
students:
• Write down the
vocabulary terms and
their definitions.
• Read the chapter
Benjamin Clasen
summaries at the
beginning of each
chapter review. 2
P.B.Loco Tell students that at the end of this unit, they will learn about the
founders of P.B.Loco and how they achieved their success. P.B.Loco produces
and sells gourmet peanut butter in cafés, franchises, and online. Friends Jodene
Jensen, Ken Hall, and Keri Barney chose to work together and sell a product that
they all loved. Ask students to give reasons why P.B.Loco’s business concept has
been successful. (Answers will vary. Students might suggest that their idea was
simple and unique and that it offers online and retail sales.)
2
Unit 1
Build Background
Ask students these ques-
Real-World Business tions to activate prior
Preview
and Career Profile knowledge:
P.B.Loco produces and sells gourmet peanut butter in Chapter 1
cafés and online. At the end of this unit, you will learn What is the difference
about the founders of P.B.Loco and how they achieved
their success. between a want and a need?
(A need is required for sur-
Decision Making Do you use a decision-making
process every time you buy something? vival; a want is something
you would like to have.)
How do businesses satisfy
wants and needs? (by pro-
viding goods and services in
the marketplace)
Chapter 2
Why must societies make
decisions about what to
produce? (No society has
enough resources to pro-
duce everything its citizens
want and need.)
How do societies choose
what to produce? (A coun-
try’s economic system deter-
mines how and what goods
Unit 1 Thematic Project Preview and services are produced.)
Trends in the World of Business After completing
the unit, you will research trends in the world of Chapter 3
business to find out how they can affect business How is economic activity
and workers. measured? (Economic indi-
Project Checklist As you read the chapters in cators are used to measure
this unit, use this checklist to prepare for the unit
the performance of an eco-
C nomic system.)
project.
✔ Think about how economic events affect What are the phases of the
workers you know. business cycle? (prosperity,
✔ Consider how technology has evolved during recession, depression, and
your lifetime. recovery)
✔ Look for cultural diversity in your community.
Courtesy of P.B.Loco
Chapter 4
✔ Notice how globalization affects business.
Why is it important for busi-
nesses to behave in an
ethical manner? (Ethics help
3
people decide how to act in
situations that involve moral
issues.)
002-003_IB_S_U01_UO_XXXXXX.indd 3
Unit Thematic Project Preview 12/20/14 12:07:38 PM
What does it mean for a
business to be socially
Trends in the World of Business
Tell students that when they complete
C Critical Thinking responsible? (A socially
responsible business con-
this unit, they will learn about how Ask students: What effect will the global
technology and globalization have tributes to the welfare of
economy have on the U.S. job market?
changed the world. They will consider society and is not solely
(More jobs will be outsourced; the jobs
how different the world will be in the devoted to making profits.)
that will pay well will require flexibility, cre-
future and how these changes could ativity, lifelong learning, and subtle and
affect the types of jobs and careers they frequent interactions with other people.)
might consider choosing.
3
Chapter 1 Chapter 1
Chapter Overview Basic Economic Concepts
Introduce the Chapter
Basic Economic Concepts
Chapter 1 is about econom-
ics. Economics is the study After completing this chapter, you will be able to:
of how people satisfy unlim-
ited and competing wants Section 1.1 A Look at Wants and Needs
and needs through the care- • State the differences between wants and needs.
ful use of limited resources. • Describe how resources limit the number of wants people and businesses can satisfy.
• Explain how to use the decision-making process to make the most of your resources.
Building Background Section 1.2 Business Activities
The term “economy,” from • Explain how profit and competition motivate businesses.
which we get “economics,” • List the activities businesses undertake when developing products and services.
comes most directly from the • Explain how business impacts you and how you impact business.
Old French word “economie,”
meaning “management of
a household.” The French
adopted the term from the
Latin word “oeconomia,”
Ask
Investing in Stocks: Initial Investment,
which was in turn derived Capital Gains, and Dividends
from the Greek word
“oikonomia.” Oikonomia
Q: How do you build wealth by investing in stocks?
came from the word “oikono-
mos,” which separates into A: Stocks represent a partial ownership of a given company. To raise money for their
current and future operations, “public” or “publicly traded” companies let anyone
“oikos,” meaning house, and
purchase a stake in their business. That’s why one unit of stock is called a share.
“-nomos” meaning managing.
There are different types of stock, including common stock and preferred stock.
Common stock is what most investors purchase—it gives the holder basic ownership
of the company and a vote equivalent to the number of shares held. The key here is
Ask “ownership”—that’s why stocks are considered equity investments—because as an
owner of the company, you benefit or lose when the company benefits or loses.
❯❯ Math Answer Mathematics A friend of yours bought 100 shares of stock in the Greg Corporation for
Convert 34 to a decimal $48 each. She calls you up to tell you that the stock is now at of the price at which
she bought it. If you buy 100 shares too, how much will you spend?
by dividing: 3 ÷ 4 = 0.75.
Now multiply: $48 × Writing a Fraction as a Decimal Any fraction BC , where b ≠ 0 can be written
0.75 = $36. Mulitply as a decimal by dividing the numerator by the denominator. So BC = a ÷ b. If the
again to get the answer: division ends, or terminates, when the remainder is zero, the decimal is a terminating
$36 × 100 = $3,600. decimal. Not all fractions can be written as terminating decimals. Some have a
repeating decimal element. A bar indicates that the decimal repeats forever. For
❯❯ Extension Activity
example, the fraction can be converted to a repeating decimal, .
Have students calculate
the price for 100 shares
of each of these stocks:
Apple, $54.10 per share; 4 Unit 1 The Economy and You
Bank of America, $48.44
per share; Yahoo, $26.97
per share. Have students
name the company that
would raise the most 004-019_IB_S_CH01_XXXXXX.indd 4 12/8/14 8:33:05 AM
4
Chapter 1
Review the Objectives
Introduce the chapter
by reviewing the chapter
objectives:
5
Section 1.1
Section 1.1
A Look at Wants and Needs
Bell Ringer Activity
Go to connectED.mcgraw-hill.com to print
out this graphic organizer.
Point out to the class that there is a category of things called needs that people
can not live without. Needs are required for survival.
D Develop Concepts
The Main Idea Ask students: How do wants and needs drive the economy? (Wants
and needs drive the economy because they determine what goods and services
businesses produce and sell.)
6
Wants and Needs Drive the Economy
Every day you make decisions about how to spend your Section 1.1
money. Suppose you have $10. You could use it to buy lunch or
to go to a movie. Which of these things do you want, and which
do you need? What is the difference between what you want and
what you need?
Discussion Starter
An Abundance of Wants and Needs Personal Wants and
Wants and needs determine what products and services busi-
Needs
Think about the last
nesses provide. Wants are things that you do not have to have
Ask students to list the
thing you bought.
to survive, but would like to have. You might want a mountain Was it a want or a things they need between
R bike, while your best friend may want a new computer. Needs are need? the time they leave their
things that you must have in order to survive. The basic needs of house in the morning and
people include food, water, shelter, and clothing. lunchtime. (transportation,
A group of people may share the same wants. A family may food, clothing, shelter, and/or
want a new kitchen table. A business may want an advanced assistive technologies)
computer system. Although these wants are shared, they are con-
sidered private wants. Individual people also have private wants.
Public wants are wants that are widely shared by many people. Ask a volunteer to
Examples include highways, public libraries, and parks. Local, answer the question:
state, and federal governments satisfy public wants. Was the last thing you
bought a want or a
Contrast How are public wants different from
private wants? need? Then discuss
how to discern between
wants and needs.
R Reading Strategy
Create a Table Ask stu-
dents to create a table that
lists the wants and needs of
consumers and the wants
and needs of businesses.
(Consumer needs include
food, water, shelter, clothing,
medicine, and/or assistive
technologies. Business
needs may include money,
office space, essential
equipment, and employees.
ColorBlind Images/Blend Images LLC
004-019_IB_S_CH01_140045.indd 7
Discuss the Photo 3/10/16 11:54:17 PM
Contrast Public wants are wants that are Goods and Services A mechanic
widely shared by many people, while private offers services, such as car repair and
wants are wants of smaller groups of peo- servicing. If the mechanic also sells
ple, such as families and businesses. car parts, such as wiper blades and
tires, then it sells goods, too.
7
Real World Satisfying Wants and Needs
Section 1.1 Businesses provide goods and services to satisfy wants and
Service Businesses needs. Goods are physical products. Skates, groceries, and tele-
H & R Block and phones are examples of goods.
Jackson Hewitt are Services are tasks that businesses perform for consumers.
(cont.)
businesses that
These include tasks that people or machines do. Like goods,
offer tax preparation
services are provided for a fee. For example, when you pay
S Skill Practice
services. Even the
Internal Revenue H & R Block to prepare your taxes, you are buying a service.
Guided Practice Service will help you Insurance, sports and entertainment, tourism, banking, and
with your taxes. Look education involve offering services. Most companies that sell
List Ask students to make a in your local business
list of classroom resources. directory and list goods also provide services to their customers.
(audiovisual equipment, three businesses in
books, desks, computers, your community that
offer tax preparation How Resources Limit the Ability
and white boards) L1 services.
Explain Have students write
to Satisfy Wants and Needs
a paragraph about how each Most people have unlimited wants for goods and services. In
resource meets a classroom the United States, most consumers are able to satisfy their basic
need or want. (Books satisfy needs. Marketers promote goods and services that will appeal to
people’s wants.
the need for information;
The more money you make, the more goods or services you
audiovisual equipment satis-
can buy. However, few people have enough resources to satisfy
fies the want for a way to
S all of their wants. Resources are items that people can use to
display information.) L2
make or obtain what they need or want. Examples of resources
Classify Ask students to include money, fuel, and labor.
write a paragraph that Resources limit the number of needs and wants people can
explains why they would satisfy. For example, you may want a new pair of jeans and a new
classify some classroom Think of a decision
you have made camera. You may have only enough money to buy one of these
resources as wants rather about how to use things. Businesses and governments are influenced by the same
than needs. (Many class- your resources. problem. They lack the resources to do all the things that they
room resources such as want to do. To make the best use of limited resources, determine
computers are not absolutely what your needs are and satisfy them first.
necessary for learning.) L3
Ask a volunteer to
describe a recent deci- A Conflict of Interest
sion about how to Critical Reading Life is full of important decisions. Think about
use resources. Have the kinds of decisions that you make as you read the question
below.
a discussion about
how everyone makes You work as an event planner for a local company. You are in
charge of hiring a caterer for the company’s 10th anniversary
decisions about using celebration. You have bids from four caterers in town. One of the
resources. bids is from a caterer who is an old friend. His bid is higher than
the three others.
Decision Making Would your relationship with the caterer affect
which company you would hire? Explain your answer.
Real World
004-019 CH01-874768.indd 8 5/2/07 5:11:12 PM 0
Service Businesses Lists will vary Decision Making The event planner
but should include accountants, tax should recuse himself or herself from
attorneys, and franchise tax preparation the decision-making process due to
businesses. Ask students if these types the conflict of interest. The employee
of businesses sell goods as well as ser- has an ethical obligation to act in the
vices. (Tax preparation businesses usu- best interest of the company.
ally provide only services, not goods.)
8
Making the Most of Your Resources
Every day you make choices about how you will spend your Section 1.1
resources to satisfy your needs and wants. You should make
W these important decisions carefully. You can make the most of
your resources by making the best choices about what to buy.
R Reading Strategy
Step 4: Make a decision. Draw a Diagram Ask stu-
Use the information you gathered to rank the alternatives and make a deci- dents to draw a diagram
sion. Once you have made your decision, you can plan how to reach your goal. that shows the steps of the
decision-making process.
(Diagrams will vary but
Step 5: Evaluate your decision. should include all of the
Once your decision is put into effect, ask yourself whether you achieved the steps in Figure 1.1.)
results you expected. Would you make the same choice again?
Student Activity
Figure 1.1 Workbook Assign the
004-019 CH01-874768.indd 9 Explain Nobody has enough resources 8/17/06 9:25:51 AM Section 1.1 Activities.
Making Better Choices Answers will
to satisfy all of their needs and wants.
vary but may involve setting goals or
Individuals, companies, and nations must
deciding how to spend money or time.
use the decision-making process to make
Remind students that one of the big-
the best use of limited resources and sat-
gest decisions they will make in their
isfy needs first, then wants.
lives is choosing a career, and that will
require serious planning.
9
Real World Personal Decision Making You may not use all of the steps of
Section 1.1 the decision-making process every time you buy something.
When you decide to buy orange juice, you may always buy the
Local Brands
Besides national same brand, such as Tropicana. However, many decisions need
orange juice brands more careful thought. A bike can be an important purchase
(cont.)
such as Tropicana®
C because you are likely to keep it for some time. When you con-
and Minute Maid®, sider what kind of bike to buy at what price, you will probably
C Critical Thinking there are local
brands, too. Go to
use all five steps of the decision-making process. The longer a
Connect to the Community your local grocery decision will affect your life, the more you need to evaluate your
store. List the brands options and consider the possible consequences.
Ask students: Should citi- it sells.
zens consider the effect of Business Decision Making Competition among businesses is
their decisions on the local intense. For this reason, businesses must decide how to best use
and global community? and conserve their resources. Businesses must make thoughtful
Why? (If citizens consider decisions that are consistent with their goals. Business manag-
the effects of their decisions ers constantly make decisions. Most companies allow managers
on the world around them, to make routine decisions independently. Higher-level business
they can help to change the managers usually make more important decisions that affect the
world in a positive way.) future of their companies.
Real World
Local Brands Remind Section 1.1
students that supporting
local businesses is good
for their communities. Review Key Concepts
1. Describe the difference between public wants and private wants.
2. Define resources.
3. List the steps in the decision-making process.
Academic Skills
4. Mathematics In making a house- Number and Operations:
hold budget, you determine that your Percents A percent is a ratio comparing a
Have students complete the basic needs require 75 percent of your number to 100. It can also be represented
Section 1.1 After You Read monthly income. The items you listed as as a fraction with 100 as the denominator.
section review. “wants” cost another 15 percent. If your To find a decimal equivalent, divide the
monthly income is $2,500, how much percent by 100. Multiply that decimal by
are you spending on wants? How much the total amount to determine the dollar
do you have left to save? amount that it represents.
Culminating Activity
Needs and Environment For math help, go to the
Have students create a Math Appendix.
presentation showing the
needs for survival in another
Go to connectED.mcgraw-hill.com to check your answers.
climate. (Someone living
in a big city has different
needs than someone living
on a small island.)
Section 1.1
Review Key Concepts
004-019_IB_S_CH01_140045.indd 10 Academic Skills 3/10/16 11:55:31 PM
Business Activities
Ask students to name a
favorite product and
Think about all the things a business must do in order to sell brainstorm all of the
products and services.
things that have to hap-
Read to Learn Academic Vocabulary pen before they see the
• Explain how profit and competition motivate You will find these words in your reading and product in the store.
businesses. on your tests. Make sure you know their (Answers will vary but may
• List the activities businesses undertake meanings. include identifying con-
when developing products and services. analyze
respond ducting market research
• Explain how business impacts you and how affect to determine opportuni-
you impact business. modify ties, obtaining funding,
The Main Idea Graphic Organizer managing the production,
Businesses seek profit by providing goods and On a chart like the one below, list the six marketing, and distributing
services in exchange for money. Companies activities businesses undertake when
D thrive on competition, the contest between
the product or service.)
developing products or services.
businesses to win customers. Competition and
profit motivate businesses to continually strive
Business Activities
to find new ways to satisfy customers.
1
Key Concepts 2
• How to Define Business 3
• Business Activities 4
• Business and You 5
6
Vocabulary
Key Terms
business
Go to connectED.mcgraw-hill.com to print
profit
competition out this graphic organizer.
market research
consumer
Lead students to understand that there are several categories of activities all
businesses undertake in order to market their goods and services.
D Develop Concepts
The Main Idea Ask students: Why do businesses provide goods and services and
compete with each other? (Businesses provide goods and services and compete with
each other to make profits.)
11
How to Define Business
Section 1.2 Think about the Whether you need to buy food for dinner or want a new bike,
types of businesses your wants and needs are usually satisfied by business. Business
in your community
and the activities is any commercial activity that seeks profit by providing goods
they do to sell and services to others in exchange for money. Profit is the
their products and money left over after a business has paid the cost of providing
Discussion Starter services. its goods and services.
The Motives of Business Businesses provide consumers and other businesses with neces-
Ask students: Why do busi- sities, such as food, clothing, housing, medical care, and trans-
nesses supply goods and portation. Businesses also provide goods and services that make
services? (The opportunity life easier and better. For entrepreneurs, owning a business also
to make profits provides the offers an opportunity to earn a good living.
motivation.) Call on a volun-
teer to use the term profit Apply Think of your favorite retail store. What
companies are its competition?
in a sentence. (Profit is the
reward for satisfying the
needs and wants of consum- The Motive of Business: To Make a Profit
ers and businesses.) Businesses supply goods and services with the motivation of
making profits. Without profit, a company cannot survive. Profit
R is the reward for satisfying the needs and wants of consumers
Ask a volunteer to name and businesses. The wealth created by businesses benefits the
a local business and entire community because businesses pay taxes and provide jobs.
describe the activities of
the business. Categorize
them as the six busi-
ness activities described
in the text. The Green Revolution
In 1798, Thomas Malthus, the great social scientist, showed
that even as population increases geometrically (2, 4, 8, 16,…),
the food supply increases arithmetically (1, 2, 3, 4,…). He pre-
R Reading Strategy dicted that hunger and conflict would be the result. In the 1960s,
the Green Revolution promised to eliminate hunger by increasing
Make a List Ask students crop yields. This was accomplished by using genetics to develop
to make a list of reasons new varieties of grains and educating farmers in the technology of
people start their own busi- agriculture. Between 1960 and 1990, food production increased
1,000 percent, famine decreased 20 percent, caloric consumption
ness. Why? (Most students increased 25 percent, and people around the world saw a rise in
will say that their motive is their incomes and standard of living.
to make money.) Remind
students that starting a
business can result in
Locate Web sites where you can research how the technology
profits but it also involves
of agriculture fueled the revolution in farming practices around the
risk, or the chance of losing world. Look for information on irrigation strategies, the use of fer-
money. tilizers and pesticides, and crop rotation. Write a few paragraphs
about how farmers in countries, such as Mexico, increased their
crop yields.
004-019_IB_S_CH01_XXXXXX.indd 13
Discuss the Photo Real World 12/20/14 12:44:45 PM
13
Business Activities
Section 1.2 You might be surprised to know all the activities a business
undertakes when developing products or services. They must:
• identify opportunities for products or services;
• evaluate the demand for products or services;
• obtain start-up money and operating capital;
W Writing Support • manage the production of goods and/or services;
• market the goods and/or services;
Independent Practice • keep records to satisfy government requirements and
Market Research Ask stu-
improve processes.
dents to interview a local
business owner and ask Some business activities should be supported by market
about the types of market research. Market research is the act of gathering and analyzing
research he or she uses information about the wants, needs, and preferences of consum-
W ers in a certain market. Market research provides information
when making business deci-
sions. Have students write that can help a business identify opportunities, analyze demand,
a summary of the interview. and respond to consumer demand for goods and services.
(Summaries will vary but
may suggest that market
research provides insight
into the attitudes and behav-
iors of consumers.)
Virtual Business
Introduce market research
to students using the Virtual
Business Retailing Market
Research activity. In this
Surviving Tough Economic Times
simulation, students learn To survive downturns, business owners must Creative business owners find ways to
why market research is adapt—and get creative! adapt, and even use the challenge to create
the foundation for future growth. That’s why 80
important to the success of The Great Recession, which hit the United
States in 2007, was the nation’s worst eco- percent of business owners whose operations
a business. survived the Great Recession said it made
nomic slowdown since the Great Depression of
the 1930s. Millions of Americans lost their jobs them better entrepreneurs.
Cooperative Learning and had trouble finding new ones. Household
Business Activities wealth declined, and consumers severely cut
Write the six catergories Active Learning
back their spending. In the first two years,
of business activities on 170,000 businesses failed. With a partner or in a team, identify a familiar
the board. Organize stu- local business and imagine you own it during
Longtime business owners’ advice for sur- tough economic times. Make a list of your cus-
dents into small groups. viving such a downturn? Take decisive action. tomers’ wants, needs, and preferences. Come
Ask groups to brainstorm a Review expenses and make necessary cuts. up with three ideas for attracting customers to
list of 20 things that busi- Make sure staff are motivated and feel valued. your business despite the recession. Present
nesses do in order to sell Work hard to retain existing customers, and your list and ideas to the class.
expand marketing efforts to attract new ones.
their products and services.
Ask volunteers to read their
lists, and as they do, ask
them to assign each item to
one of the categories writ-
ten on the board. (Paying 14 Chapter 1 Basic Economic Concepts
taxes, for example, should
be categorized as Keeping
Records. Advertising should Active Learning
be classified as Marketing. 004-019_IB_S_CH01_140045.indd 14 3/10/16 11:58:48 PM
Creating products should Lists and ideas will vary but should
be classified as Managing recognize the differences between
Production.) wants, needs, and preferences. An
example of an idea would be a general
Student Activity store offering a five-dollars-off voucher
Workbook Assign the for purchases over $40.
Section 1.2 Activities.
14
Business and You
Businesses make many decisions that impact you, the con- Section 1.2
sumer. A consumer is a person who uses goods or services. Busi-
nesses decide what goods and services to produce to meet the
needs and wants of consumers. Businesses also affect consum- (cont.)
ers when they modify or discontinue products. The decision to
stop manufacturing products is often because there is a decreas-
ing demand for them. Businesses affect you as a wage earner. In
C Critical Thinking
order to make goods and provide services, businesses hire people Diagram to Compare Ask
C to work. students to create a dia-
Consumers also affect businesses. Consumers decide what gram that shows how busi-
kinds of goods and services they want and where they will buy nesses affect consumers
them. You reward companies by making the decision to purchase and how consumers affect
their products. When consumers choose not to purchase a busi- businesses. (Diagrams will
ness’s products or services, the business usually fails. To avoid vary. Businesses affect
failure, a business can modify its products, services, and business consumers by providing jobs
practices to satisfy consumers. and goods and services.
Consumers affect busi-
nesses by choosing which
businesses to support and
Section 1.2 which goods and services
to buy.)
Section 1.2
004-019_IB_S_CH01_140045.indd 15 Review Key Concepts Academic Skills 3/11/16 12:19:01 AM
Vocabulary Review
1. Students should write Section 1.1 Summary Section 1.2 Summary
complete sentences A Look at Wants and Needs Everyone Business Activities Businesses supply
using each term has wants and needs. Wants are things goods and services with the motivation
correctly. that you do not have to have to survive, of making profits. Companies thrive
but would like to have. Needs are things on competition, the contest between
Review Key Concepts that you must have in order to survive. businesses to win customers. All
People use resources to make or obtain businesses undertake these activities:
2. Wants are things that what they need or want. Resources identifying opportunities, evaluating
you do not need to sur- limit the number of needs and wants demand, obtaining money, managing
vive, but would like to people can satisfy. The decision-making production, marketing to consumers
have. Needs are things process can help you make good and businesses, and keeping records.
choices and make the most of your Consumers affect businesses by deciding
that you must have to resources by considering alternatives what kind of goods and services to buy.
survive. and their consequences. The longer a Businesses affect consumers by making
3. Few people have decision will affect your life, the more decisions about what products and
enough resources you need to consider all of the possible services to offer and by providing jobs.
consequences.
to satisfy all of their
needs and wants. To
make the best use of
limited resources, sat-
isfy needs first, then Vocabulary Review
wants. 1. On a sheet of paper, use each of these key terms and academic vocabulary terms in a
4. The decision-making sentence.
process helps you to Key Terms Academic Vocabulary
consider your alterna- wants business determine analyze
tives and their conse- needs profit identify respond
quences. It can help goods competition consider affect
you make the careful services market research evaluate modify
decisions about the resources consumer
use of your resources.
5. Businesses are moti-
vated by profit, the Review Key Concepts
reward for satisfying
the needs and wants 2. Explain the differences between wants and needs.
of consumers and busi- 3. Describe how resources limit the number of wants people and businesses can satisfy.
nesses. Competition 4. Explain how to use the decision-making process to make the most of your resources.
is the contest among
5. Explain how profit and competition motivate businesses.
businesses to win
customers. 6. List the activities businesses undertake when developing products and services.
6. identifying oppor- 7. Explain how business impacts you and how you impact business.
tunities, evaluating
demand, obtaining
money, managing pro-
duction, marketing, and 16 Chapter 1 Review and Activities
keeping records
7. Consumers affect busi-
nesses by deciding Critical Thinking 11. Students may offer a wide range of
what kind of goods answers, including offering a good or
and services to buy. 8. Students might refer to how their
004-019 CH01-874768.indd 16 service that is unavailable, update 8/17/06 9:26:11 AM 0
18
Chapter 1
Role
Play
INTERPERSONAL SKILLS THE IMPORTANCE OF BUSINESS
28. The strength of your interpersonal skills 30. Situation You are an assistant manager
can make or break how successful you for a company that makes household 28. Reports will vary,
are in the workplace. Interpersonal appliances. Your manager has asked you but should explain
skills are essentially people skills—the to put together a presentation about that employers value
nontechnical, intangible, personality- the activities of business for its new interpersonal skills,
specific skills that determine your sales associates.
because they are
strengths as a leader, listener, negotiator,
Activity Prepare a presentation that important indicators of
and conflict mediator. Write a one-page
describes all of the activities that job performance.
report that explains why it is important
businesses undertake in order to sell
for businesses to have employees with
products and services. Use magazines
good interpersonal skills.
to find photos that represent all of
Business the activities, and include the photos
in your presentation. Then give the 29. A wide range of edu-
CAREERS presentation to your classmates (sales cational backgrounds
FIND YOUR DREAM JOB associates). is suitable for this
29. Locate the Occupational Outlook Evaluation You will be evaluated on occupation, but many
Handbook Web site. Click on the “OOH how well you meet the following employers prefer those
Search/A-Z Index” link and enter the performance indicators:
search term “Tomorrow’s Jobs” to read with experience in
about the future job market. Then write • Explain the motivations of business. related occupations.
a one-page report about this topic. • Describe business activities. Employers prefer a
Conclude your report with a list of • Discuss how competition impacts the bachelor’s degree in
things you could do now to prepare company’s decisions. marketing. Courses
yourself to pursue the occupation. in business law, eco-
• Prepare a written report.
nomics, accounting,
finance, mathemat-
ics, and statistics are
Standardized Test Practice advantageous.
Directions Find the value of each algebraic expression. Write the letter of the
answer on a separate piece of paper.
1. If 3x = 6x − 15 then x + 8 = 2. Evaluate 5t + 4 if t = 3.
30. Presentations should
A 10 F 7
address the competen-
B 11 G 13
cies noted in the role
C 12 H 19
play. Businesses are
D 13 J 21
motivated by profit and
TEST-TAKING TIP When answering competition. In order
multiple-choice questions, read the to operate, businesses
question first, then read all the answer identify opportunities,
choices before choosing your answer.
Eliminate answers you know are not right. evaluate demand,
obtain funding, man-
age production, market
products, and keep
records. Competition
Chapter 1 Review and Activities 19 influences businesses
to develop better and
cheaper goods and
services, which benefits
STRATEGIES FOR STANDARDIZED TEST PREP SUCCESS consumers.
004-019_IB_S_CH01_XXXXXX.indd 19 11/26/14 12:15:33 PM
Test Savvy Explain to students that muliple-choice items on stardardized
tests consist of a stem, or question, and distractors, or answer choices. Often, Standardized Test Practice
test-takers will read the stem, glance at the distractors, and quickly choose 1. D
the one they think is right. Help students develop the habit of reading the stem 2. H
and all the distractors before deciding. If they are unsure, have them eliminate
distractors they know aren’t correct before deciding among the remaining choices.
19