Economics Introducing Key Vocabulary

Do Now: Want vs Need Draw a picture of a want. Write definition underneath. Draw a picture of a need. Write definition underneath

Wants vs Need What is the difference between needs and wants?

Closing Reflections 1. Tell me about which “wants” may feel like a “need” 1. Choose a vocabulary word that you will learn. Define it in your own words. You cannot choose “want or need”

Partner Work Chart on page 6.

8/14 Do Now:  What are the 3 economic questions?  What is scarcity?

Blue Word Vocab Section 2 In your notebook: Write blue vocabulary words from pages minutes

Economic Product Economic Product: goods and services that are useful relatively scarce, and transferable to others. Good Services Consumers

Good Useful or satisfies a need or want consumer good: final use capital good: used to produce other goods and services

Consumers Consumers: person who uses goods and services to satisfy wants and needs. Consumers engage in consumption

Factors of Production Land Labor Capital Entrepreneurs When all factors of production are present production can take place.

Factors of Production

Production The process of creating goods and services AKA:

Capital Human Capital: the sum of the skills, abilities, health, and motivation of people.

Market A “place” where buyers and sellers can exchange economic products. Like a grocery store.

Factor Markets Markets where productive resources are bought and sold. Use land for rent, hire labor, borrow money

Product Markets Where producers sell good and services

Closing How do consumers affect scarcity?

8/18 Do Now: What are the factors of production? What is a market? What is the difference between a factor market and a product market?

Adam Smith Who was adam smith and what was he famous for? Page 18: Examining The Profile Question 1 and 2

Group Work: Starting a business In small groups, decide on a business you would like to starts. You must include 1. The Name 2. Answers to the 3 economic questions 3. Explanation of your factors of production Everything must be written. Be prepared to share You have 20 minutes

Section 3 Question on page 25. Answer question minutes

8/20 Do Now: Economics Write this definition: Economics is the study of production, distribution, and consumption of goods and services Write what it means in your own words.

Economic Decisions Scarcity forces us to make decisions. Us= Individual People Us= Our Society Us= Our World

Trade-Off Alternative choice when making an economic decision Parents can stay home with their kids or Parents can go to work

Opportunity Cost Cost of next best alternative Can be time, money or resource Parents can stay home with their kids: He looses the income Or Parents can go to work: He loses the time with his kids

Cost-Benefit Analysis Comparison Compares the cost of a decision to the benefit received for that decision. How much time does the parent lose, is it worth not having income

Standard of Living Quality of life based on wants and needs