EconomicsEconomics

The science of The science of goodsgoods

Michael Quinones, NBCTwww.socialstudiesguy.com

Think about the two images below and describe Think about the two images below and describe some of the differences between themsome of the differences between them::

What are the possible causes for what you What are the possible causes for what you see?see?

Have choices contributed to what you see?Have choices contributed to what you see?[Be sure to support your answers with examples to [Be sure to support your answers with examples to

explain your point]explain your point]

APK: Activation of Prior KnowledgeWrite 3-5 sentences answering the following questions.

Question of the Day Question of the Day

How does economics How does economics affect your life?affect your life?

Key Vocabulary TermsKey Vocabulary Terms DescribeDescribe and and explainexplain the following the following

terms in terms in your own wordsyour own words::

EconomicsEconomics WantsWants NeedsNeeds LaborLabor Land/LocationLand/Location CapitalCapital EntrepreneurEntrepreneur ProductivityProductivity ResourcesResources Factors of ProductionFactors of Production

EconomicsEconomics

The The studystudy of of moneymoney and things of and things of valuevalue..

This includes how to This includes how to make sound make sound decisions to acquire decisions to acquire things you need.things you need.

NeedsNeeds Items Items neededneeded for for

survivalsurvival or or basic basic healthhealth..

AmericansAmericans are are fortunate to have fortunate to have more choices than more choices than most countries.most countries.

WantsWants Items Items not needednot needed

for basic survival.for basic survival.

These are These are considered considered comfortcomfort items.items.

Luxuries that are Luxuries that are not not necessarynecessary..

Four Factors of ProductionFour Factors of ProductionThe four essential/necessary items that drive economic The four essential/necessary items that drive economic

activity activity Land/LocationLand/Location--TheThe place whereplace where things will things will

happen in businesshappen in business

LaborLabor--Person/people doing the work.Person/people doing the work.

CapitalCapital--Items needed/required to generate a Items needed/required to generate a profit.profit.

EntrepreneurshipEntrepreneurship--The person willing to take The person willing to take the necessary risk or sacrifice to make a the necessary risk or sacrifice to make a business work [usually unique and business work [usually unique and innovative].innovative].

LaborLabor Effort put forth by Effort put forth by

workersworkers to create a to create a product.product.

Different types of labor Different types of labor are considered are considered more more valuablevaluable..

WagesWages or or salarysalary is is based on the value of based on the value of the labor.the labor.

CapitalCapital Capital goodsCapital goods are anything that are anything that

can be used to help generate can be used to help generate money or make products.money or make products.

Prime ExamplesPrime Examples: people and : people and machines.machines.

EntrepreneurEntrepreneur

A person who risks his/her A person who risks his/her time and money to time and money to financially succeed in financially succeed in business.business.

His/her goal is to make a lot His/her goal is to make a lot of money.of money.

Helping other people is Helping other people is secondary.secondary.

Usually, successful Usually, successful entrepreneurs have unique entrepreneurs have unique business ideas, concepts, business ideas, concepts, and products that no other and products that no other company has at the time. company has at the time.

Bill Gate

Oprah Winfrey

Carlos SlimDonald Trump

Land/LocationLand/Location The last item needed to power an economy is The last item needed to power an economy is

landland or or location.location.

This is the area necessary for economic This is the area necessary for economic interaction may take place [farmer planting interaction may take place [farmer planting crops, store selling products, etc.]crops, store selling products, etc.]

Check yourselfCheck yourself

What are the four so called What are the four so called Factors of Factors of ProductionProduction??

[give an example for each][give an example for each]

[The factors necessary to cause economic activity to occur][The factors necessary to cause economic activity to occur]

ProductivityProductivity

This is a measure of how This is a measure of how good or successful a good or successful a business or entrepreneur business or entrepreneur

isis..

A business that makes a A business that makes a lot of money is said to be lot of money is said to be productiveproductive..

Natural ResourcesNatural Resources RenewableRenewable

Can be replaced.Can be replaced.

Things used to Things used to produce products.produce products.

Can be replaced Can be replaced easily or quickly.easily or quickly.

NonrenewableNonrenewable

Cannot be replaced Cannot be replaced quickly or maybe not at quickly or maybe not at all.all.

Can be replaced at great Can be replaced at great expense.expense.

Content FrameContent FrameEconomics is best described as Economics is best described as ___________________________. The biggest difference ___________________________. The biggest difference between between wantswants and and needsneeds is is ___________________________________________________. ___________________________________________________. I would describe labor as _____________________________. I would describe labor as _____________________________. If I was the owner of a McDonald’s restaurant 3 examples of If I was the owner of a McDonald’s restaurant 3 examples of capital products I would use are ____________, ___________ capital products I would use are ____________, ___________ and _____________. Oprah Winfrey, Donald Trump and Bill and _____________. Oprah Winfrey, Donald Trump and Bill Gates are considered entrepreneurs because they Gates are considered entrepreneurs because they _________________________________________________________________________________________________________________. The 4 factors of production are ____________, ___________. The 4 factors of production are ____________, _______________, ____________________,and _______________, ____________________,and __________________. The biggest difference between __________________. The biggest difference between renewable and non-renewable resources is ________________renewable and non-renewable resources is ______________________________________________________________.______________________________________________.

SourcesSources

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