warm-up list 5 things you need list 5 things you want how are the two lists different? which ones...
TRANSCRIPT
Warm-up
• List 5 things you need
• List 5 things you want
• How are the two lists different? Which ones can you live without?
Scarcity and Choice• The study of __________ begins
with the idea that people _________have everything they need and want.
• A ______is something like air, food, or shelter that is necessary for survival.
• A _______is an item that we desire but that is not essential to survival.
• Economics is the study of how people seek to ________ their needs and wants by making____________.
economicseconomics
cannotcannot
needneed
wantwant
satisfysatisfy
choiceschoices
Scarcity• ________are physical objects such
as shoes and shirts. Services are ______or _______that one person performs for another. Scarcity implies ________ quantities of resources to meet ________wants.
• No one can have an _________ supply of everything. Scarcity is not the same as a__________. A shortage occurs when producers _________ or _________ offer goods or services at the current prices. They can be temporary or____________.
GoodsGoods
actionsactions activitiesactivities
limitedlimitedunlimitedunlimited
endlessendless
shortageshortage
will notwill not cannotcannot
long-termlong-term
Factors of Production: Land, Labor and Capital
• Economists call the resources that are used to make all goods and services the ____________________. These include land, labor and capital.
L A N Da ll n a tu ra l re sou rces
L A B O Re ffo rt b y a pe rson fo r a ta sk
C A P IT A Lh u m a n -m a de reso urce th a t c rea tes
o the r go o ds an d se rvices
Factors o f P roduction
factors of productionfactors of production
Land, Labor, Capital
• Land refers to all ________ resources used to produce goods and services.
• Labor is the effort that a person devotes to a task for which that person is paid.
• Capital is any human-made resource that is used to produce other goods and services.
naturalnatural
Physical and Human Capital• Human-made objects
used to _________ other goods and services are called _________ capital. This saves companies a great deal of time and money.
• Human capital is the ___________ and skills a worker gains through education and experience.
createcreate
physicalphysical
knowledgeknowledge
LABOR…and the World
• **Economic development in ___________ countries, as in developed countries is linked to the factors of production. Many economists believe that the __________ impediment to economic growth in developing countries is the_________________. With poor _________ conditions and low _________ rates, the labor force does not have the ______ needed to keep up with modern technology.**
developingdeveloping
biggestbiggest
quality of laborquality of laborhealthhealth literacyliteracy
skillsskills
Entrepreneurs
• Entrepreneurs are ambitious leaders who decide how to ________ land, labor, and capital resources to create _____ goods and services.
combinecombine
newnew
Fill out the following…
• Which factors of production is represented:– An office building ___________________– And assembly line worker ____________– A tree used to make paper ____________– Unused soil ________________________– An artist ___________________________– A student __________________________
• Name 3 Entrepreneurs • 1. _______________ 2. ______________ 3. _______________
Andrew Carnegie• Andrew Carnegie, founder
of_______________, was an _____________who was instrumental in turning American steel manufacturing into a powerful industry. Between 1860-1900 steel became a key factor of economic development in the US. Carnegie utilized new manufacturing technologies such as the __________ ___________ and the open-hearth process.
Carnegie SteelCarnegie Steelentrepreneurentrepreneur
BessemerBessemerprocessprocess
• In 1901 Carnegie sold his company to___________, then retired and devoted himself to philanthropy
J.P. MorganJ.P. Morgan
Homework
• Binders & Syllabus are due next class• Because your time is scarce, you are constantly
facing trade-offs. Make a list of the trade-offs you have made in choosing how you used your time during a one-week period. What activities did you choose to do? What were the opportunity costs involved in your choices? You must have 3 per day (minimum). Chart format.
• There will be a quiz next class