Basic Economic Concepts Mr. Rosenstock Economics San Fernando High School

1. Copy the lists of words as written below 2 1. Copy the lists of words as written below 2. Discuss with a neighbor & answer the questions below Trident chewing gum A bath towel a pair of Vans Contact lenses iPhone 6 42” LCD TV 4 dinner forks Lip gloss Handcuffs A box of rulers Stethoscope Cart with 20 laptops Boots with non-slip soles and steel toe Circular saw Spalding basketball Rubber-cased flashlight 1.) What do you think the items in both lists have in common? 2.) What might each list represent?

Goods, Services and Consumers Economics is concerned with economic products: any good or service that commands a price a good: is an item, economically useful and/or satisfies a need or want a book, car, double cheeseburger from In N’ Out Consumer good: a good that is intended for use by individuals (consumers…people who use/consume goods & services) Capital good: when a good is used to produce other goods or services (ex: a robot welder, an oven in a bakery) Service: work that is performed for someone barber, plumber, lawyer, professional tennis player, phlebotomist, etc Question: what is the difference between a good and a service?

Value, Utility and Wealth Q1: what is value? Value refers to a worth that can be expressed in dollars and cents Q2: why are some things worth more than others? the scarcity (rarity) of something affects its value The utility of something affects its value Utility is the usefulness of something to someone it is untouchable and it varies from person to person Wealth: the accumulation of those products that are tangible, useful, scarce and can be transferred from one person to another Exit question: what is the relationship among scarcity, value, utility and wealth?

Division of Labor, Specialization and Economic Interdependence Division of Labor: is when work is arranged so that workers perform fewer tasks than before (ex) assembly line in a factory Advantage: leads to proficiency and specialization This makes production more efficient Disadvantage: Work is repetitive and boring Repetition of tasks increases chances for injury in workplace Investing in Human Capital: Government and business can support and improve productivity in people by investing in education, health care, providing training, day care to families, etc.