Week 1 Vocabulary Copy and define the week 1 vocabulary terms on the side board using the text book.

Scarcity and the Science of Economics Chapter 1 Section 1 Please have Books out and open to page #5

Read page 5, 2nd paragraph Make a list of 5 things that you do not have but that you want

The Fundamental Economic Problem Scarcity is the fundamental problem The condition that results from not having enough resources to produce all of the goods that people want

Defining Economics The study of how people try to satisfy their wants in spite of relatively few resources

Needs Food Clothing Shelter EVERYTHING ELSE IS A WANT!!!

TINSTAAFL There Is No Such Thing As A Free Lunch Someone has to pay for everything

The Three Basic Questions of Economics WHAT to Produce HOW to Produce For WHOM to Produce

Factors of Production Land Capital Financial Capital Labor Entrepreneurs

The Study of Economics Description Analysis Explanation Prediction Tells us what the world around us looks like Gross Domestic Product Analysis Helps us figure out why things work and how things happen Explanation The communication of what is known Makes fixing problems easier Prediction What will happen?

Allow me to introduce to you… Lets Be Economists Allow me to introduce to you… AIR FRANK’S

Let’s Answer the Three Questions What are we producing? AIR FRANK’S!!! How will we produce them? Factory? Sweatshop? Who will we be making them for? Basketball players Women Children Who wouldn’t want them?

Air Frank’s Factors of Production Land Why would we need land? Capital What Capital would we need? Financial Capital Do we need money for this venture? Labor What types of laborers will we need? Entrepreneur Who is the entrepreneur?