What is Economics? Slide 1 – Introduction. Guiding questions to ask class: - What does “THE ECONOMY” mean to you? Examples? - what are some things that are affected by the economy?

Making Economic Choices: What’s the difference between a need and a want? What’s the difference between goods and services? How does scarcity force decisions? Slide 2 – Explain to students that there are choices that go into economics. Some choices effect economics, and some choices are effect BY economics. Students should be able to: - Answer the questions on the slide - Define “Scarcity” - relate scarcity to decision making

Factors of Production: L-and L-abor C-apital E-ntrepreneurship Introduce students to the Factors of Production. Students should be able to remember what the 4 factors are. Use of a mnemonic device may help remember these.

Land: Includes any natural resources used to produce goods and/or services Students should be aware that land doesn’t refer only to actual land. Any natural resource can and should be included in this category.

Labor: The effort people devote to the tasks for which they are paid Students should be reminded at this point that time can be just as valuable as tools or money (capital). Labor could mean physical work, or just time spent studying or office work.

Capital: Any human-made resource that is used to produce other goods and/or services -Human Capital -Physical Capital Students should know: - many things are considered capital. Money, tools, equipment, supplies, etc. - Human capital refers to things like education, and training that can help with production of goods. - physical capital refers to things like money, tools, equipment or other MAN MADE things that contribute to production

Entrepreneur: A person who decides how to combine resources to create goods and services Students should be able to : - Define Entrepreneur - Cite examples (business owners, inventors, etc)

Are the following things Land, Labor, Capital, or Entrepreneurship? - Oil drilled from a field - Money - Sending employees to learn to file properly - a tractor on a farm - water - computers to file reports - ovens for a bakery - An inventor of a new kind of delivery service - workers hired to assemble computers Students should be able to classify any of these examples of factors of production.

Exit Ticket: Look at the “How the Economy Works” feature in section 1 of chapter 1. Make a list of the risks an entrepreneur takes and the possible rewards they might gain. Now write a couple of sentences explaining why entrepreneurs are important to the economy of a community or nation. Edit this slide as needed for whatever book you are working with. You can also leave out step one entirely if you’ve adequately covered things that you need.