Welcome to Economics PLEASE TAKE OUT YOUR NOTEBOOK

Scenario #1 - $500 1. List 6 items you would want to buy with $500 and select only 3 that you have enough money for. 2. Where do you go to buy your items? 3. How were your items made and who was involved in making them?

Timed-Pair-Share: Take a few seconds to think about why you picked those 3 items and explain it to your shoulder partner. After 30 seconds switch and listen to your partner.

Scenario #2 - $5,000 1. List 5 items you would want to buy with $5,000 and select 3 that you have enough money for. 2. Where do you go to buy your items? 3. How were your items made and who was involved in making them?

Timed-Pair-Share: Take a few seconds to think about why you picked those 3 items and explain it to your face partner. After 30 seconds switch and listen to your partner.

Scenario #3 - $50,000 1. List 4 items you would want to buy with $50,000 and select 3 that you have enough money for. 2. Where do you go to buy? 3. How were your items made and who was involved in making them?

Timed-Pair-Share: Take a few seconds to think about why you picked those 3 items and explain it to your shoulder partner. After 30 seconds switch and listen to your partner.

Resources and Scarcity Economics LG: I will understand the relationship between resources and scarcity by categorizing uses of resources.

I. Economics: The study of people’s choices under the condition of scarcity Scarcity: When there are limited quantities of resources to meet unlimited wants Goods: physical items of value Services: human action that has value Consumers: those who buy goods/services Producers: those who create or manufacture goods/services

Wallet

Giant Sequoia Trees

Lumber

New Home Construction

Scissors = good

Haircut = service

II. Factors of Production (think business!) Natural Resources (land): materials from the earth 1. Renewable - plants, animals, timber 2. non-renewable - mineral ores and fuels Human Resources (labor): people’s effort & skill Capital Resources (capital): machines, tools, and buildings Entrepreneur = the business owner who takes the risk of bringing together the factors of production for a profit

Oil

Renewable Resource = forest

cow

Workers – Human Resources

Capital Resources

Bill Gates

Donald Trump

Reading Activity Read pages 12-17: answer the following questions… What examples can you give of transactions taking place in product markets? What is the relationship between scarcity, value, utility, and wealth? Where do you fit in the Circular Flow of Economic Activity? What education do you want for income purposes? Why? Read pages 5 -10: answer the following questions… 1. What is the fundamental economic problem? 2. What are the 3 basic economic questions every society must answer? 3. What are the 4 key elements of economics? 4. What items have you been without because of limited resources?