• Distinguish between a need and a want and provide examples. • Distinguish between a producer and a consumer.
• Distinguish between a good or service and provide examples.
• Examine how consumers tend to satisfy their wants and needs by buying goods and services from businesses.
• Describe how resources are used to produce goods and services in the satisfaction of wants of consumers.
• Define economic resources as land, labour, capital and enterprise and provide relevant examples.
• Describe how a business owner identifies the nature of consumer demand by analysing sales, conducting market research and examining social trends.
• Define scarcity and explain the concept of the economic problem as faced by consumers and producers
• Explain what is meant by the term ‘consumer sovereignty’

Explanation:

1. A need is something thought to be a necessity or essential item required for life. Examples include food, water, and shelter. A want is something unnecessary but desired or items that increase the quality of living. Examples are Travel, Entertainment, Designer clothing.

2. Producers create, or produce, goods and provide services, while consumers buy those goods and services with money.

3. Goods are the things that can be offered to a marketplace for attention, acquisition, use or consumption that can satisfy a consumer's need or desire. They are durable goods, which last for many years, such as refrigerators, washing machines, etc., and non-durable goods that can only last a short time, such as consumer goods, soaps, powdered shampoo, etc. while Service is an activity in which one party can offer to another party without transferring the ownership of anything. examples are legal advice, surgery, house cleaning.

4. You satisfy your needs and wants by purchasing and consuming goods and services. What are Goods? Goods are things that you can see and touch. They are the products you can purchase to meet your wants and needs.

5. There are natural resources that are

not manmade, human resources, which are the service providers, and capital resources which are the

tools used to produce a good or service.

6. Economic resources are Things that are inputs to the production of goods and services. There are four economic resources: land, labour, capital, and technology. Technology is sometimes referred to as entrepreneurship.

Land...Natural resources are used in the production of goods and services. Some examples of land are lumber, raw materials, fish, soil, minerals, and energy resources.

Labor...Work effort used in the production of goods and services. Some examples are the number of workers and the number of hours worked.

CapitalPhysical goods that are produced and used to produce other goods. Examples of capital would be machinery, technology, and tools such as computers; hammers; factories; robots; trucks, and trains used to transport goods; and other equipment employed in the production of a good or service.

Enterprise(sometimes called entrepreneurship) The ability to combine the other productive resources into goods and services.

7. Market research blends consumer behaviour and economic trends to confirm and improve your business idea. Here are a few methods you can use to do direct research:

...Surveys

Questionnaires

Focus groups

In-depth interviews

8. One of the defining features of economics is scarcity, which deals with how people satisfy unlimited wants and needs with limited resources. Scarcity affects the monetary value people place on goods and services and how governments and private firms decide to distribute resources.

9. The economic power exercised by the preferences of consumers in a free market.