Factors of production & Short Supply

Warm- up 1) What is a natural resource? 2) What are two examples of a natural resource? 3) Define short supply, in your own words.

Think, pair, share Say you’re a college graduate with the hopes of owning a business; however, you have no money or job. How do you find the resources necessary to create a stable and profitable business?

Reviewing vocabulary Factors of Production An economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit The factors of production include land, labor, capital, and entrepreneurship

Question: What happens with these factors of production are in short supply?

Foldable Take piece of computer paper and make four sections. Give each factor of production one section (natural resources, labor, capital, entrepreneurship)

Natural resources Rise in cost More of a consumer demand What happens when natural resources are in short supply? Rise in cost More of a consumer demand Relying on other nations for products

Labor Migration Outside sources being used People forced to work What happens when labor is in short supply? Migration Outside sources being used People forced to work Lack of skilled workers

Capital Undeveloped countries Economic decline Foreign investment What happens when capital is in short supply? Undeveloped countries Economic decline Foreign investment

Entrepreneurship What happens when entrepreneurship is in short supply? Countries without public education can lead to low skill level for jobs Lack of investing = no business growth Lack of job creation

Four corners (voice level one) As a group, you will be given a scenario that applies to one of the factors of production in short supply In each corner of the room is a different factor. Discuss as a table and agree upon which you feel the scenario is describing. Each table should have one representative put on the respective wall when directed.

Scenarios for factors in short supply

Scenario #1 Mrs. Alexander graduated college with a degree in business; however, her husband is in the military and they moved immediately after graduation to Ghana. She is worried that there is not a product or resource worth the money it costs to grow a business. What factor of production is in short supply in Mrs. Alexander’s new home? Entrepreneurship

Scenario #2 United States found that it is much cheaper and easier to find workers in countries like China, Vietnam, and the Philippines to make clothes and ship back to put in stores. What factor of production is in short supply for the United States? Labor

Scenario #3 Millions of people are awaiting the new Apple 8C release date. Apple phones have to been known to contain certain elements that are “present in small amounts, a milligram or less”. With the amount of iPhones that are in demand, which factor of production is in short supply? Natural Resources

Scenario #4 Between the years of 2006-2016, Greece was faced with an extreme debt that left the country begging for assistance from the European Union. The EU now has to decide if they are willing to help their struggling economy. What factor of production is in short supply in Greece? Entrepreneurship

Scenario #5 The US Military has given large amounts of supplies and weapons to the Middle East at no cost. Although the Middle East has become well equipped, it is still remains as one of the most underdeveloped places in the world. Overall, this has a negative effect on the US economy. Which factor of production does this represent? Capital

Scenario #6 Amanda owned a local CD shop. As technology advanced over the years, she noticed a decline in the demand of her product and an increase in her supply. Her sales became very minimal and she has been on the hunt for a business investor for the past 3 months with no luck. Without one, she will have to file bankruptcy. In order to keep her business moving forward, she needs money and new product ideas. Which factor of production is in short supply? Entrepreneurship

Works Cited http://www.bbc.com/future/story/20140314-the-worlds-scarcest-material