economics satisfying our needs and wants. scarcity goods and services are scarce because we cannot...
TRANSCRIPT
Economics Satisfying Our Needs and Wants
Scarcity
• Goods and services are scarce because we cannot produce enough of them to satisfy everyone’s wants.
Satisfying our Wants and Needs
• Goods – Things we can touch or see that satisfy our wants or needs.
• Services – Actions people undertake in order to satisfy their wants and needs.
Production Resources
Businesses use three types of production
resources to produce goods and services.
Natural
Human
Capital
Natural Resources
• Resources that are present without human interference
• “gifts of nature”
• Examples are land, timber and mineral deposits
Human Resources
• Any human effort used to produce goods and services
• Examples include workers and their skills, training and education
Capital Resources
• Tools of production
• Goods used to produce other goods or services
• Examples include tools, machinery and buildings.
• Money used to purchase these resources is called capital.
Identifying Resources:
NATURAL HUMAN CAPITAL
cotton tractor marketing degree table saws computers
water driver’s license crude oil employees
factory building aluminum electrical license land
Identifying Resources:
NATURAL HUMAN CAPITAL
cotton
water
crude oil
land
marketing degree
driver’s license
employees
electrical license
tractor
table saws
computers
factory building
What is an economy?
• Part I – Introduction
• Part II – Economic Choices
• Part lll – Resources
• Part IV- Capital Resources Link
What is an Economy?
Assignment - Video Voiceover
Create a video voiceover with your partner by creating a script to this video about economics.
Levels of Economic Activity
• Primary – First level
• Secondary – Second level
• Tertiary – Third level
• Quaternary – Fourth level
Primary Activities
• Businesses involved in gathering raw materials.
• Examples include mining and timber companies.
Secondary Activities
• Businesses that add value to materials by changing their form.
• Examples include automobile manufacturers and textile factories.
Tertiary Activities
• Companies that provide business or professional services.
• Examples include salespeople, teachers and doctors.
Quaternary Activities
• Businesses that provide information, management and research services by highly-trained persons.
• Examples include property management or environmental research companies.
Important Note:
The more developed an economy is, the
greater the number and variety of activities
you will find.
Identifying Levels of Activity
_____ Hershey Chocolate _____ Pilot Gas Station
_____ Luck Stone Corp. _____ NTelos
_____ Law Well Drilling Inc. _____ Fry Appraisal Co.
_____Oak Lawn Mausoleum _____ Walmart
_____Augusta Medical Center _____ Hollister
Identifying Levels of Activity
_____ Hershey Chocolate _____ Pilot Gas Station
_____ Luck Stone Corp. _____ NTelos
_____ Law Well Drilling Inc. _____ Fry Appraisal Co.
_____Oak Lawn Mausoleum _____ Walmart
_____Augusta Medical Center _____ Hollister
S T
P T
T Q
T T
ST
Economic Systems
• The way people produce and exchange goods and services is called an economic system.
• Four types of economic systems: traditional, command, market and mixed.
Traditional Economy
Goods and Services are traded without
exchanging money. Also called “barter”.
Market Economy
Production of goods and services is
determined by the demand from consumers.
Command Economy
Production of goods and services is
determined by a central government, which
usually owns the means of production.
Mixed Economy
A combination of command and market
economies provides goods and services so
that all people will benefit.
The End