Vocabulary: Unit 8 Economics- The study of making decisions in a world with limited resources. Scarcity- The fundamental economic problem. Factors.

Vocabulary: Unit 8Vocabulary: Unit 8 Economics- The study of making decisions in a Economics- The study of making decisions in a

world with limited resources.world with limited resources. Scarcity- The fundamental economic problem.Scarcity- The fundamental economic problem. Factors of Production- Resources necessary to Factors of Production- Resources necessary to

produce goods & services.produce goods & services. Productivity- The rate at which resources can Productivity- The rate at which resources can

be turned into goods/services.be turned into goods/services. Entrepreneur- Someone who starts a business.Entrepreneur- Someone who starts a business.

Unit 8: Warm up?Unit 8: Warm up? What is the difference between What is the difference between

something that you need and something something that you need and something that you want? Give an example of that you want? Give an example of something you need and something that something you need and something that you want. you want.

EconomicsEconomics

EQ: HOW ARE THE 4 FACTORS OF EQ: HOW ARE THE 4 FACTORS OF PRODUCTION USED IN SATISFYING PRODUCTION USED IN SATISFYING OUR WANTS AND NEEDS?OUR WANTS AND NEEDS?

What is economics?What is economics? The study of how we make decisions in a The study of how we make decisions in a

world where resources are limitedworld where resources are limited AKA the science of decision makingAKA the science of decision making

What is the fundamental What is the fundamental problem with economics?problem with economics?

SCARCITYSCARCITY When we do not have enough resources to When we do not have enough resources to

produce all the things we would like to haveproduce all the things we would like to have You have to make choices among the You have to make choices among the

alternativesalternatives Needs: things required to survive such as Needs: things required to survive such as

food, water and shelterfood, water and shelter Wants: things we would like to have such Wants: things we would like to have such

as tv, internet, video games, etc.as tv, internet, video games, etc.

When starting a business When starting a business you must ask yourself 3 you must ask yourself 3 questions:questions:

1. 1. What to produceWhat to produce Have to figure out what products are needed Have to figure out what products are needed

right now and are the resources availableright now and are the resources available 2. 2. How to produceHow to produce

How are youHow are you going to make the goodgoing to make the good 3. 3. For whom to produceFor whom to produce

Who is your targeted audience? Older Who is your targeted audience? Older people, babies, teenagers, young adults, people, babies, teenagers, young adults, etc.etc.

What do economists use What do economists use to collect data?to collect data?

Economic modelsEconomic models Simplified representation of the real world Simplified representation of the real world

that are used to explain how the economy that are used to explain how the economy works or to predict if your product would works or to predict if your product would survive the marketsurvive the market

Problem: based on assumptionsProblem: based on assumptions

You want to open up a You want to open up a new business but you’re new business but you’re not sure what to sell.not sure what to sell.

What to provide?What to provide? GoodsGoods

Tangible products like Tangible products like books and carsbooks and cars

OrOr ServicesServices

Work that is performed Work that is performed for someone elsefor someone else

Exp: Haircuts, Exp: Haircuts, garbage pickupgarbage pickup

Factors of ProductionFactors of Production Resources necessary Resources necessary

to produce goods and to produce goods and servicesservices

4 kinds4 kinds Natural resources Natural resources

(land)(land) LaborLabor CapitalCapital EntrepreneurEntrepreneur

Natural ResourcesNatural Resources Refers to all the gifts of Refers to all the gifts of

naturenature fertile fields, rainfall, forests, fertile fields, rainfall, forests,

mineral deposits, etc.mineral deposits, etc. Can be renewable or non-Can be renewable or non-

renewablerenewable Renewable resources can Renewable resources can

be replenished over time…be replenished over time…Ex: trees, sunlightEx: trees, sunlight

Nonrenewable resources Nonrenewable resources is a resource that cannot is a resource that cannot be replenished over time…be replenished over time…Ex: oilEx: oil

LaborLabor The nation’s labor The nation’s labor

force or human force or human resourcesresources

Refers to both the Refers to both the physical and mental physical and mental efforts that people efforts that people contribute contribute

CapitalCapital The tools, The tools,

machinery, and machinery, and buildings used to buildings used to make other productsmake other products

EXP: bulldozers, EXP: bulldozers, trucks, hammers, trucks, hammers, saws, drills, etc.saws, drills, etc.

EntrepreneurEntrepreneur The person who starts the new businessThe person who starts the new business

ProductivityProductivity This is the rate at This is the rate at

which resources can which resources can be turned into be turned into goods/services.goods/services. Increased productivity Increased productivity

means more means more goods/services goods/services available to buyers available to buyers and financial rewards and financial rewards for laborersfor laborers

GRAPHIC ORGANIZERGRAPHIC ORGANIZER

EQ: HOW ARE THE 4 FACTORS OF EQ: HOW ARE THE 4 FACTORS OF PRODUCTION USED IN SATISFYING PRODUCTION USED IN SATISFYING OUR WANTS AND NEEDS?OUR WANTS AND NEEDS?

ActivityActivity Create a pamphlet containing the following:Create a pamphlet containing the following:

Four Factors of Production with definitionsFour Factors of Production with definitions 3 Examples for each factor of production 3 Examples for each factor of production Explanation of what happens if we Explanation of what happens if we

experience a scarcity in that factor.experience a scarcity in that factor. Illustration (picture) for each.Illustration (picture) for each.

reflectionreflection What is economics?What is economics? What is the fundamental problem with economics?What is the fundamental problem with economics? What 3 questions should you ask yourself when starting a What 3 questions should you ask yourself when starting a

business?business? What do economists use to collect data?What do economists use to collect data? Summarize the difference between goods and services.Summarize the difference between goods and services. What are factors of production?What are factors of production? What are the four kinds of factors of production?What are the four kinds of factors of production? Summarize the difference between renewable and nonrenewable Summarize the difference between renewable and nonrenewable

resources.resources. What two attributes are a part of labor?What two attributes are a part of labor? What are examples of capital?What are examples of capital? What is an entrepreneur?What is an entrepreneur? What is productivity?What is productivity? What businesses/industries is the State of NC known for What businesses/industries is the State of NC known for

throughout its history?throughout its history?

Closing?Closing? What would life be like if no economic What would life be like if no economic

scarcity existed?scarcity existed?