Economic Fundamentals Productive Resources/Factors of Production

Our enduring understanding… Economics is… scarcity forcing us to make decisions about allocating limited resources to get the unlimited number of things we want.

Scarcity… is the fundamental economic problem. Basic condition that exists when unlimited wants/needs EXCEEED limited resources. Items are only scarce if they are LIMITED and DESIRABLE

Determining Scarcity Limited ? Time Water Garbage Desirable ? Scarce ? Breathable Air Garbage

Capital (capital goods) Productive Resources Natural (land) Human (labor) Capital (capital goods) Entrepreneurship Productive Resources / Factors of Production synonymous Natural Resources (Land) Anything given to us by the earth. Student examples Human Resources (Labor) The human effort made to produce a product Examples: Student led Encourage students to share their jobs Capital: Something used to make a final product Must be reusable Tool used to make good/service Physical: oven, alternator, pencil, computer, internet service, etc Human: education/training a worker receives to do their job ex: college, on the job training Entrepreneurship: risk taken to invent/improve a product. Motivated by one or more of the following. Profit Job creation Innovation Improve Society

Natural Resources Have students observe and identify the factors of production using Chik-fil-A

Human Resources Have students observe and identify the factors of production using Chik-fil-A

Capital Good Have students observe and identify the factors of production using Chik-fil-A

Entrepreneur Have students observe and identify the factors of production using Chik-fil-A

Productive Resources

Group work activity

Producers and Consumers Goods and Services ∞ Producers and Consumers People use these 4 productive resources to produce goods and services that other people want (hopefully) and will consume. The producer then earns a profit if the production costs are less than the selling price that consumers are willing and able to pay.

how can we decide who in your group gets that Snickers bar? Everyone wants that delicious Snickers bar….so how can we decide who in your group gets that Snickers bar?