Chapter 2: Economic Resources and Systems Explain how scarcity requires individuals and nations to make decisions about resources Describe the four factors of production Describe the three basic economic questions each country must answer to make decisions about using its resources Contrast the way a market economy and a command economy answer the three economic questions

Key vocabulary Scarcity Factors of Production Natural resources Labor resources Capital resources Entrepreneurial resource Entrepreneurship Entrepreneur economics Economic systems Market economy Price Supply Demand Equilibrium price Command economy Mixed economy

Economic Decision making Main factor governing production is scarcity Find 5 instances of abundant resources in the world? Find 5 instances of abundance of scarce resources? Consumers are considered to have unlimited wants mixed with a limited supply What are some decisions that you personally made that were governed by the concept of scarcity?

Factors of Production Natural resources Labor resources Capital resources Entrepreneurial resources What are the factors of production that go into cheese?

Factors of Production What are some natural resources that are found in the US? What type of labor is found in the US? How are capital resources different from capital? List 5 successful Entrepreneurs from other countries and what they did.

Economic Systems Scarcity of economic resources forces every country to develop an economic system that determines how resources will be used. Each system has advantages and disadvantages. Economics studies how individuals and groups of individuals strive to satisfy their needs and wants by making choices. Who, what, when, where, why, and how

Finding Natural Resources List 3 companies that primarily specialize in natural resource extraction What natural resources do they extract? Write a 1 page article about one of the companies and their products/ services Try include the share price and ticker symbol.

Types of Economies Supply and demand Range of prices Equilibrium price Market Command Supply and demand Range of prices Equilibrium price Shortage Surplus Competition Central authority makes key economic decisions Government dictates supply and price No competition Low innovation Low monetary motivation

Types of economies Mixed economies Combination of a market and command economy Governments can pick and choose what features of each theory they will provide

Online assignment Go to CIA factbook Download- Comparative systems worksheet Fill out the worksheet comparing the three countries Answer the following questions using examples from your research. How can the presence or absence of natural resources and arable land affect a nation's economy, regardless of the type of economic system? How can life expectancy and literacy rates affect the quality of labor in the economy? How can fertility rates affect the use of scarce resources?

Online assignment How can GDP per capita and poverty rates indicate standards of living in each system? How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization? How can electricity, communication, and transportation facilities indicate the potential for industrial growth? Considering the lack of natural resources, the labor problems, and the lack of capital and little industrialization of developing countries, how can developing countries develop? (Hint: Look at Economy - Overview for Chad).

Presentation You are starting your own country. Your limitations are 1 coastline available to an ocean and 5 natural resources of your choosing. You can tailor the rest of your country to suit your needs as a government choosing an economic system. What system would you install? Why? What would you produce? What would you keep under government control? What would you allow to be a private enterprise? 1 Fun fact about your country

Chapter 2 Quiz Concentration game