Goods and Services See and touch Activities that are consumed at the same time they are produced.

U.S. Economy Largest producer of goods and services Americans consume more than any other country 2x more shopping malls than schools! Debt through loans and credit cards Make sure important needs and wants are satisfied

Economic Resources Raw materials supplied by nature Limited Natural Resources Human Resources Capital Resources Raw materials supplied by nature Oil Minerals Nutrients Bodies of water Food People producing goods and services Anyone involved in producing the product or making it available Products and money used in production of goods and services Money Buildings Supplies Equipment

Economic Resources Give 2 examples of type of resource Natural Resources Human Resources Capital Resources

1-1 Assessment Answer questions 1-4

1-2 Economic Choices

Economic Choices Activity

Basic Economic Problem SCARCITY Not having enough resources to satisfy every need

Economic Decision-Making Process of choosing which wants, among several options, will be satisfied.

When you give up something to have something else. Tradeoff Opportunity Cost When you give up something to have something else. Value of the next-best alternative that you did NOT choose What you are willing to give up in order to have your first choice

Decision Making Process 6. Review your decision 5. Act on your choice 4. Choose one 3. Evaluate the advantages and disadvantages of each choice 2. Identify the choices 1. Define the problem

1-2 Assessment Problems 1-4 Page 15