Chapter 1 Notes  Make a list of 10 things you want!!!  What is the difference between a “Need” vs. a “want”?

Scarcity The Economic Problem

SCARCITY Limited Resources

SCARCITY Unlimited Wants

Economics Is…  The study of limited resources but unlimited wants, which forces people to make a CHOICE!

Opportunity Cost  How much does it cost you to “attend” this particular “class session”? Think about it! Before going on, try to come up with an answer to this question. Talk with a partner.

Opportunity Cost  To answer the question, you should have asked yourself what else you could be doing during this time?  Next, prioritize all of these other activities.

Opportunity Cost  The first item on your list of alternative activities is the opportunity cost of attending this class.  Every activity has a cost - what you gave up.

Opportunity Cost  Because resources are scarce, choices need to be made.  Choice results in cost.  The cost of any choice is what you had to give up.  This is called Opportunity Cost.

Daily Warm Up : Marshmallow Video  Questions: What is the opportunity cost for the children who ate the marshmallow first?  What is the opportunity cost for the children who did not eat the marshmallow?  Write about a time you chose “instant gratification” over “delayed gratification.” What was the opportunity cost of this decision?  What is the value of self-discipline?

Economics: TWO BRANCHES MicroeconomicsMacroeconomics “ Small Picture” “Big Picture” Study of individual Study of the economy units. as a whole. Looking at one thing Concerned with the at a time TOTAL picture Individual decision making Societal decision making

Four Factors of Production  Land-natural resources – oil, water, wood, iron, gold. etc  Labor-human resources - an individual providing his/her services for wages  Capital-capitial resources - equipment that can be used for production  Entrepreneurship-someone that uses the first three resources to make a profit. Considered to be a “risk taker” and business leader.

Copy the Table in your Spiral Notebook!!! LandLaborCapitalEntrepreneurship

Determine which of the four factors of production it falls under:  Computer  Forests  Cab driver  Bakery Store Owner  Petroleum  Automobile  Brain surgeon  Factories  Tractor  Highway system  Radio  Mountains  Small restaurant owner  Minerals  Pencil  Computer software developer  Waitress  Ocean  Fish

Come Up With 3 Examples of Your Own and include it in your table  Land:  Labor:  Capital:  Entrepreneur:

Collage of the Four Factors of Production (work with a partner)  Create a collage that illustrates the four factors of production.  Divide your paper into 4 equal parts, and have each “box” represent one of the four factors of production. Label one under each box.  Find pictures that fall under each category.

THE FOUR FACTORS OF PRODUCTION LandLabor CapitalEntrepreneurship

Due to scarcity, every Society Must Answer 3 Questions: 1. What goods shall we produce? 2. How shall these goods be produced? 3. For whom should the goods be produced?

In the U.S. the three Qs are answered as follows: 1. WHAT TO PRODUCE? U.S. production leans towards consumer goods & service 2. HOW TO PRODUCE? U.S. believes in private enterprise (corporations and small businesses privately owned) 3. FOR WHOM TO PRODUCE? U.S. production leans towards the large middle class

What is Economics: Activity Choose a profession that you would like to enter. Choose a profession that you would like to enter. Identify the following: Identify the following: 1.What good/service will you provide? 2.How does this good/service satisfy a need or want? 3.Which productive resources will you use? 4.How can you tell that these resources are scarce? Share with a partner Share with a partner