 Take three minutes to do the following:  Study Figure 5 “World Population Growth Rate” on p.SH10  Where is the greatest population? Lowest population?  Why would economist care about world population?  Study Figure 9 “US Land Use and Land Cover) on p. SH-12  What are the two biggest uses of land in the US?  Is that surprising to you? Yes or no  Why would an economist care how we use our land? GRAPH STUDY

 Grab a textbook and finish the assessment on page 8-9  Turn in when done BELLRINGER

 Day 1 (Monday)  Check homework (supplies)  Discussion: scarcity and resources  Textbook reading: p. 3-8  Classwork: Review and assessment p. 8-9 (TURN IT IN)  Day 2 (Tuesday)  Bellringer (Finish assessment p. 8-9)  Notes: Scarcity and FOP  Review classwork from Day 1  Exit ticket: identify FOP in a business and define scarcity AGENDA

SCARCITY & FACTORS OF PRODUCTION

 Students will demonstrate an understanding of the four factors of production by identifying factors in a fictitious business  Students will define the word scarcity as an exit ticket  Students will demonstrate an understanding of how scarcity and the FOP are linked by completing an assessment on page 8-9 in their textbook OBJECTIVES

 What is an example of a “need”?  Something that is absolutely essential for you to survive  Water  Money  House  What is an example of a “want”?  Something that is superfluous (means extra!) to your needs. You do not need these things to survive.  Pizza  A mansion  Abercrombie hoodie NEEDS VS. WANTS

IDENTIFY:

 How would you explain the difference between goods and services?  Goods: Tangible items you can hold in your hand  Services: Things that you pay someone to do for you GOODS VS. SERVICES

WHICH ONES ARE WHICH?

 Limited quantities of resources to meet unlimited wants SCARCITY

 What is scarcity?  Limited quantities of resources to meet unlimited needs!! CFU

 Factors of production + scarcity = economics  Economics: The study of scarcity and how scarcity affects the world around us FACTORS OF PRODUCTION

 Land  Labor  Capital (human, physical, financial)  Entrepreneur FACTORS OF PRODUCTION

 Land: all natural resources. Key = NATURAL  Labor: Physical actions performed that require no specialized knowledge or upper level education  Entrepreneur: Someone who combines the factors of production to create a business. FACTORS OF PRODUCTION

 Financial capital = cash money!! You need money to start a business!  Human capital = knowledge and skills a worker gains through education and experience  Physical capital = The “stuff” you need to build a business (building, tools, etc….) TYPES OF CAPITAL

 An office building?  Physical capital  An assembly line worker?  Labor  A tree used to make paper?  Land  Unused soil?  Land  An artist?  Human capital  A business owner?  Entrepreneur WHICH FOP?

 You wanna start a business that specializes in writing research papers for other students. Identify something for each of the five factors of production that you will need in order to successfully get this off the ground…. SOOOOO…..

 Factors of production:  Land  Where will this business be located? Your house? Will you buy a store front building?  Labor  Who will be physically typing the papers? You? Hiring workers?  Capital  What types of skill sets will you (or your workers) be required to have (Human capital)? What tools will you need to be successful in this business? How much money to get started?  Entrepreneur  You!  Add that with scarcity (people have scarce time and money, not many competitors) and you will have a successful business PAPER WRITING BUSINESS…

 Let’s go over yesterday’s classwork… REVIEW

 On your whiteboard:  Define Scarcity  List the factors of production EXIT TICKET

 Identify an example of each of the five factors of production for the Subway in Windsor HOMEWORK