EXPLORING BUSINESS and MARKETING The ECONOMY Student Will: Define 3 types of economic resources and understand the impact of scarcity Understand how Supply.

EXPLORING BUSINESS and MARKETING

The ECONOMY

Student Will:Define 3 types of economic resources and understand the impact of scarcity Understand how Supply and Demand affect prices

Unit 1: Intro. To Business & EconomicsPart 1: “Needs and Wants”

College & Career Readiness Standards Achieved – Unit 1

READING:Infer the main idea or purpose of straightforward paragraphs in uncomplicated literacy narrativesENGLISH:Determine relevancy when presented with a variety of sentence-level detailsSCIENCE:Compare or combine data from a simple data presentationWRITING:Show understanding of the complexity of the issue in the prompt by:

–Examining different perspectives –Evaluating implications or complications of the issue

Needs vs. Wants Things that are

necessary for survival.

Include:

Shelter

Food

Water

Clothing

Things not necessary for survival but which add comfort and pleasure to our lives. Examples include:

Goods vs. Services

are things you can see and touch. Examples are CD player, clothes, cars. – Also called

“Products”

things that satisfy our wants through the efforts of other people or equipment.

Today, more people work in jobs that provide services than in jobs that produce products.

ECONOMIC RESOURCES

The means through which goods and services are produced – 3 Kinds of economic resources – We DO NOT have an endless supply of

these resources • Natural Resources• Human Resources• Capital Resources

Natural Resources

: Raw materials supplied by nature– All materials that come from the earth, the

water or air are natural resources. • Iron Ore• Oxygen• Copper• Fish & Vegetables

Human Resources(Labor)

People who work to produce goods and services. – Include (List people who work…)

• _________________________

• _________________________

• _________________________

• _________________________

Capital Resources

: Tools, equipment, and buildings that are used to produce goods and services

– Grill used to cook hamburgers at McDonalds

– Your investment in the business (aka the money that is needed to run a business)

As a future Entrepreneur…(with your partner)

Why do you think there are so many less manufacturing jobs in the US?

Now that you’ve evaluated our economy, which type of Job skills are most needed in our economy?

If you were to open a business, would it be manufacturing a product (goods) or selling a product (services)

Circular Flow!

How To Vote via Texting

1. Standard texting rates only (worst case US $0.20)2. We have no access to your phone number3. Capitalization doesn’t matter, but spaces and spelling doTIPS

EXAMPLE

How To Vote via PollEv.com

Capitalization doesn’t matter, but spaces and spelling doTIP

EXAMPLE

Limited Resources

We DO NOT have an endless supply of economic resources!– oil, lumber, sugar, clean water – capital and human resources are also

limited

Limited Resources =Scarcity “Basic Economic Problem”

– Conflict between unlimited wants and limited resources.

• Problem faces individuals, businesses, and government of satisfying unlimited wants with limited resources.

Supply vs. Demand

Prices = Availability– Example = Gasoline

• When the supply for gasoline declines, the price will increase with demand (scarcity).

Supply vs. Demand

With a short supply of product, prices will generally increase.

With an increase in the amount of product, prices will generally decrease.

Supply vs. Demand

Collector Cars Baseball Cards MGHS Parking

Lot– How can the school

District charge $100

For one parking spot?

Opportunity Cost : The cost of the next best alternative.

EVERYTHING has a cost.

You cannot have everything you want, you must choose which of the things you want most and can afford.

Example: You have the choice of going to work, or doing homework.

The opportunity cost of going to work is…not doing your homework.

Assignment= Email @ [email protected]

How has Scarcity Affected your life? (tell me about a time where you had to go without something? Did you get an alternative?)

Explain the opportunity cost associated with your decision.

Sign up for Txt Alerts from Class! Check Website for notes..

Answer only your table’s color

What is the conflict that

scarity creates?

What normally occurs when

there is a short supply of a product?

How does the concept of supply

& demand affect

businesses?

What is an example of a

human resource?

What is the opportunity

cost of going to the MG

Football game?

What is an example of a

capital resource?

What normally occurs when

there is a large demand for a

product?

What is an example of a

natural resource?

What are the four needs necessary

for survival?