Starter  List three ways to be an economically smart citizen.

Economic Resources Students will learn about the four factors of production and the Gross Domestic Product.

Goods and Services  Goods tangible products  Services work performed by someone else

Factors of Production Natural ResourcesLabor - industrial materials (as Nation’s workforce or mineral deposits and human resources waterpower) supplied by Nature Capital (capital goods)Entrepreneurs -tools, machinery, buildings individuals who start new Used to make other productsbusinesses. They are innovative and willing to take risks.

Gross Domestic Product (GDP)  A measure of the size of the economy.  It is the total value, in dollars, of all final goods and services produced in a country during a single year.  Final goods are sold to their users  GDP is expressed in terms of money.  If the GDP is higher than the previous year’s GDP then the economy is expanding. If lower, the economy is declining

Standard of Living  The quality of life based on the possession of necessities and luxuries that make life easier.  When the GDP grows faster than the population, there are more goods and services for citizens to enjoy  GDP nor Standard of Living does not measure society’s overall well-being or account for the improvement in product quality

Guided Practice: Factors of Production  Use a sheet of paper and draw the following diagram. Draw it large enough to cover the sheet of paper.  Label the circles -capital -land -labor -entrepreneurship

Directions: you own a restaurant. The list below is items needed to run you business. Place each item in the correct circle. candlesgas½ acre of land carpetingDelivery vansMenus Cleaning fluidsParking lotsTablecloths Paper productslampsDelivery person cookselectricityUtensils decorationsKitchen appliancesWaiters AwningManagerHost and hostess Signs Salt and pepper shaker Fire and gas alarms Fire extinguishersOwnerWater Cash registerPots and pansCleaning equipment Reception deskCashierWindow washer FoodDishesCleaning service FurnitureRent & maintenanceaccountant

Individual Practice  Divide the computer paper into four boxes  Label each box with one of the four factors of production  You are planning to start a business. Chose the type of business (not a restaurant) and give it a name. Place the name at the top of the paper or in the middle.  Draw examples of items needed for the business -capital- 5 examples -labor- 2 examples -land- 2 examples -entrepreneurship- 1 example