Basic Economics US economy by state Economics Mr. Rosenstock San Fernando High School US economy by state

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 X 65” 4K UHD TV a set of dinner plates lip gloss a set of adjustable wrenches rubber cased flashlight an hydraulic lift stethoscope circular saw Spalding basketball handcuffs a box of latex gloves 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: a good that 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

Value refers to worth that can be expressed in dollars and cents Value, Utility and Wealth Q1: what is value? Value refers to 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 Homework question: what is the relationship among scarcity, value, utility and wealth?

Means of Production In order for anything to be made there are three requirements: Land: the “gifts of nature.” Our natural resources

Labor: Workers – with all their skills and abilities

Capital: all of the tools, facilities, machines and money that are used in the production of goods and services