Bell-Work Think of your favorite product and identify the resources that are used to produce it. Example: Pre-washed salad. Vegetables are natural resources. Labor resources include growers, packagers, and truckers. Capital resources include the food preparation and distribution centers. The people that thought of “salad in a bag are entrepreneurial resources. (this is my example)

Objectives Explain how scarcity requires individuals and nations to make decisions about resources. Describe the four factors of production.

The Main Idea Both people and countries must deal with the problem of scarcity. Nations do not have enough factors of production to produce everything that their population wants. Factors of production are all the economic resources necessary to produce a society’s goods and services.

Key Concepts Making Economic Decisions Factors of Production

Key Terms scarcity the lack of resources all the economic resources necessary to produce a society’s good and services factors of production

Key Terms natural resources raw materials from nature that are used to produce goods labor resources people who make the goods and services for which they are paid

Key Terms capital resources things used to produce good and services resources used by the people who recognize a business opportunity and start a business entrepreneurial resources

Key Terms The process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business entrepreneurship

Key Terms An individual who undertakes the creation, organization, and ownership of a business entrepreneur

Making Economic Decisions The principle of scarcity states that there are limited resources for satisfying unlimited wants and needs. scarcity a lack of resources

Graphic Organizer When dealing with scarcity, it is important to think of the best way to use the item that is in short supply. Demand Supply

There are four factors of production. all the economic resources necessary to produce a society’s goods and services

Graphic Organizer Natural Resources Labor Resources Capital Resources Entrepreneurial Resources

Natural resources can be processed in various ways to create goods. raw materials from nature that are used to produce goods

Graphic Organizer Wheat Cattle Coal Iron Oil Renewable resources can be reproduced Nonrenewable resources are limited Wheat Cattle Coal Iron Oil

Being Resourceful During the world oil crisis in 1973, Japan was able to reduce its dependence on oil and enhance productivity through conservation and alternate sources of industrial energy.

Labor resources can be skilled or unskilled, physical or intellectual. people who make the goods and services for which they are paid

Capital resources are also called capital goods. the things used to produce goods and services, such as buildings, materials, and equipment

Capital Resources Examples of capital resources include: Delivery trucks Supermarkets Cash registers Farm equipment

Entrepreneurial Resources Entrepreneurial resources meet society’s changing wants and needs. entrepreneurial resources resources used by the people who recognize opportunities and start businesses

Entrepreneurial Resources Entrepreneurship is necessary when starting a business. entrepreneurship the process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business

Entrepreneurial Resources An entrepreneur accepts the risks and responsibilities of business ownership. entrepreneur an individual who undertakes the creation, organization, and ownership of a business

Entrepreneurial Resources Entrepreneurial resources are individuals who start and direct businesses to produce goods and services to satisfy needs or wants. Labor resources are people who produce the goods or services.

Why do all nations face the problem of scarcity? No nation has enough resources to satisfy all of its wants and needs.

Identify one similarity and one difference between labor and entrepreneurial resources. Entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

List five different natural resources. Answers will vary. Examples include water, oil, iron ore.

Activity Write a one page profile about an entrepreneur and use all the key terms in this section. scarcity natural resources entrepreneurial resources factors of production labor resources entrepreneurship capital resources entrepreneur

Key Concepts Making Economic Decisions Factors of Production

Exit Ticket Why do all nations face the problem of scarcity? List five different natural resources Please list any confusions that you may have with any of the topics covered in today’s class. If you understand the material, please indicate one thing that sparked your interest.

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