Warm-up List 5 things you need List 5 things you want How are the two lists different? Which ones can you live without?

Chapter 1 What is Economics? Section 1 Scarcity and the Factors of Production

Scarcity and Choice The study of __________ begins with the idea that people _________have everything they need and want. A ______is something like air, food, or shelter that is necessary for survival. A _______is an item that we desire but that is not essential to survival. Economics is the study of how people seek to ________ their needs and wants by making____________. economics cannot need want satisfy choices

Scarcity ________are physical objects such as shoes and shirts. Services are ______or _______that one person performs for another. Scarcity implies ________ quantities of resources to meet ________wants. No one can have an _________ supply of everything. Scarcity is not the same as a__________. A shortage occurs when producers _________ or _________ offer goods or services at the current prices. They can be temporary or____________. Goods actionsactivities limited unlimited endless shortage will not cannot long-term

Factors of Production: Land, Labor and Capital Economists call the resources that are used to make all goods and services the ____________________. These include land, labor and capital. factors of production

Land, Labor, Capital Land refers to all ________ resources used to produce goods and services. Labor is the effort that a person devotes to a task for which that person is paid. Capital is any human-made resource that is used to produce other goods and services.natural

Physical and Human Capital Human-made objects used to _________ other goods and services are called _________ capital. This saves companies a great deal of time and money. Human capital is the ___________ and skills a worker gains through education and experience. create physical knowledge

LABOR…and the World **Economic development in ___________ countries, as in developed countries is linked to the factors of production. Many economists believe that the __________ impediment to economic growth in developing countries is the_________________. With poor _________ conditions and low _________ rates, the labor force does not have the ______ needed to keep up with modern technology.** developing biggest quality of labor health literacy skills

Entrepreneurs Entrepreneurs are ambitious leaders who decide how to ________ land, labor, and capital resources to create _____ goods and services. combine new

Fill out the following… Which factors of production is represented: –An office building ___________________ –And assembly line worker ____________ –A tree used to make paper ____________ –Unused soil ________________________ –An artist ___________________________ –A student __________________________ Name 3 Entrepreneurs 1. _______________ 2. ______________ 3. _______________

Andrew Carnegie Andrew Carnegie, founder of_______________, was an _____________who was instrumental in turning American steel manufacturing into a powerful industry. Between steel became a key factor of economic development in the US. Carnegie utilized new manufacturing technologies such as the __________ ___________ and the open- hearth process. Carnegie Steel entrepreneur Bessemer process

In 1901 Carnegie sold his company to___________, then retired and devoted himself to philanthropy J.P. Morgan

Homework Binders & Syllabus are due next class Because your time is scarce, you are constantly facing trade-offs. Make a list of the trade-offs you have made in choosing how you used your time during a one-week period. What activities did you choose to do? What were the opportunity costs involved in your choices? You must have 3 per day (minimum). Chart format. There will be a quiz next class