vocabulary: unit 8 economics- the study of making decisions in a world with limited resources. ...
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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?
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