Agenda Grab a textbook from the back corner of the room!

WARM UP In the US, there are about 37 million youths between the ages of 10-19. People from this age are the ones most likely to work as babysitters. Yet, parents in many neighborhoods today have a hard time finding babysitters. When they are lucky enough to find one, the sitter often charges high prices - $10 to $20 an hour! And the minimum wage is $9.30! Question: Why are teenagers today so greedy!? Who do they think they are!? Explain the above using vocabulary from yesterday’s class.

ECONOMICS: THE THREE BASIC QUESTIONS Because of scarcity (unlimited wants + limited resources), societies need to address the following:

THREE QUESTIONS OF ECONOMICS WHAT to produce What goods and services does the society need? HOW to produce By what means does the government produce those goods and services? FOR WHOM to produce Who will receive the things being produced? *hint: think about wartime

ECONOMIC SYSTEMS TRADITIONAL COMMAND MARKET MIXED

NEEDS VS. WANTS Needs: things required in order to live (food, water, clean air, shelter, clothing) Wants: things that add pleasure or comfort to your life (movies, sports cars, luxury homes, toilet paper)

WARM UP Do you believe your needs are more similar to or different from those that your parents had when they were your age? With your group, prepare a list of 5 needs that you agree would be similar to those of your parents when they were young and a list of 5 needs that you agree would likely be different. JUSTIFY why those listed are needs and not wants

In the USA… Do service businesses satisfy more of your needs or your wants? Generally service businesses address more wants than needs, but there are some service business that satisfy needs.

How do you satisfy your needs and wants?

SATISFYING WANTS AND NEEDS By purchasing goods and services GOODS SERVICES Products that you can see and touch Activites that are consumed at the same time they are produced They are intangible, which means they have no physical characteristics Pens, pencils, cell phones, shoes Haircut, Lyft ride, car wash The United States economy is the largest producer of goods and services in the world.

SATISFYING WANTS AND NEEDS Goods and services are produced through factors of production LABOR (HUMAN RESOURCES) LAND (NATURAL RESOURCES) FACTORS OF PRODUCTION CAPITAL ENTREPRENEURIAL

FACTORS OF PRODUCTION LAND (NATURAL) -- raw materials supplied by nature -- water, trees, oil, minerals -- renewable v. nonrenewable LABOR (HUMAN) -- people who produce goods and services – they contribute physical and mental energy -- factory workers, farmers, sales people, truck drivers CAPITAL -- tools, equipment, buildings, money that are used to produce goods and services -- hammers, buildings, cash, bulldozers, ovens ENTREPRENEURIAL -- those who take a risk by combining the above to develop a new product or business -- Bill Gates, Mark Zuckerberg, Elon Musk

FACTORS OF PRODUCTION: GAME TIME Or, “productive factors” They are the resources required to produce things that we want to have

Productive Resources Land Labor Capital Entrepreneurs Natural resources not created by people People with their efforts, abilities, and skills The tools, equipment, and machinery used in the production of goods and services Risk takers who do something new with existing resources *driving part of an economy

EXIT TICKET How has the demand for HUMAN resources changed in business over the past decade? Need for more education and higher skills Businesses using more workers in other countries to produce goods and services.