What is economics? Economics is the decisions about how to distribute limited resources to satisfy unlimited wants

Every society has limited productive resources Natural Resource (land) Human Resource (labor) Capital Resource (tools) + Entrepreneurship (risk) Which are used to produce Goods & (objects) Services (activities)

Natural Resource (land), Capital Resource (tool), Human Resource (labor), or Entrepreneurship (risk) ?

NATURAL RESOURCES (land) Raw materials; made by nature Used to make other goods Ex. trees, oil, water, minerals Goods used to make other goods Ex. tools, machines, factories More & better capital goods help workers to make products more quickly and more cheaply CAPITAL RESOURCES (tools)

HUMAN RESOURCE/CAPITAL (labor) A worker’s health, education, experience, training, skills, and values Ex. social studies class, a computer training course, medical care, & parent lectures about being on time and honesty Raise salary, improve health, or add to a person’s good habits

ENTREPRENEURSHIP (risk) The rare mixture of the qualities needed to create and run businesses. People who have these qualities risk their time, money, and energy to make a profit. An entrepreneur recognizes human wants and takes risks to provide a good or service to satisfy those wants. They might create new products, come up with new ways to make things, or find new ways to reach buyers ex. Bill Gates (Microsoft), Ben & Jerry (ice cream), ___________(Facebook)

Decide whether the following pictures are an example of a natural, capital, human resource, or entrepreneurship.

GOODS & SERVICES

GOODS (objects) have shape and can be seen & touched can be stored for later use Ex. cars, clothing, & machines SERVICES (actions) cannot be touched must be used as soon as they are provided Ex. hair styling, medical care, and equipment repair do not have a physical presence

Every society has limited productive resources Natural Resource (land) Human Resource (labor) Capital Resource (tools) + Entrepreneurship (risk) Which are used to produce Goods & (objects) Services (actions)