WARM UP  Make a list of 10 things you want!!!  What is the difference between a “Need” vs. a “want”?

Scarcity The Economic Problem

SCARCITY Limited Resources

SCARCITY Unlimited Wants

Economics Is…  The study of limited resources but unlimited wants, which forces people to make a CHOICE!

Opportunity Cost  How much does it cost you to “attend” this particular “class session”? Think about it! Before going on, try to come up with an answer to this question. Talk with a partner.

Opportunity Cost  To answer the question, you should have asked yourself what else you could be doing during this time?  Next, prioritize all of these other activities.

Opportunity Cost  The first item on your list of alternative activities is the opportunity cost of attending this class.  Every activity has a cost - what you gave up.

Opportunity Cost  Because resources are scarce, choices need to be made.  Choice results in cost.  The cost of any choice is what you had to give up.  This is called Opportunity Cost.

Economics: TWO BRANCHES MicroeconomicsMacroeconomics “ Small Picture” “Big Picture” Study of individual Study of the economy units. as a whole. Looking at one thing Concerned with the at a time TOTAL picture Individual decision making Societal decision making

Four Factors of Production  Land-natural resources  Labor-an individual providing his/her services for wages  Capital-equipment that can be used for production  Entrepreneurship-someone that uses the first three resources to make a profit. Considered to be a “risk taker” and business leader.

Charlie and the Chocolate Factory Questions  1. Identify 2 things that are scarce in the movie.  2. Who is the main character? Describe his socioeconomic background.  3. What does Willy Wonka specialize in? Determine whether it’s related to micro or macroeconomics. Why?  4. What type of incentive does Wonka offer to the kids? How many winners are there?  5. What is the main character’s Opportunity Cost? Why does he almost give up the prize?  6. Why did the employees lose their job at the factory?  7. Give one example of each of these: land, labor, capital, and entrepreneurship in the movie.

Copy the Table in your Spiral Notebook!!! LandLaborCapitalEntrepreneurship

Determine which of the four factors of production it falls under:  Computer  Forests  Cab driver  Bakery Store Owner  Petroleum  Automobile  Brain surgeon  Factories  Tractor  Highway system  Radio  Mountains  Small restaurant owner  Minerals  Pencil  Computer software developer  Waitress  Ocean  Fish

Come Up With 3 Examples of Your Own and include it in your table  Land:  Labor:  Capital:  Entrepreneur:

Collage of the Four Factors of Production (work with a partner)  Create a collage that illustrates the four factors of production.  Divide your paper into 4 equal parts, and have each “box” represent one of the four factors of production. Label one under each box.  Find pictures that fall under each category.

THE FOUR FACTORS OF PRODUCTION LandLabor CapitalEntrepreneurship

Due to scarcity, every Society Must Answer 3 Questions: 1. What goods shall we produce? 2. How shall these goods be produced? 3. For whom should the goods be produced?

In the U.S. the three Qs are answered as follows: 1. WHAT TO PRODUCE? U.S. production leans towards consumer goods & service 2. HOW TO PRODUCE? U.S. believes in private enterprise (corporations and small businesses privately owned) 3. FOR WHOM TO PRODUCE? U.S. production leans towards the large middle class