Standard 1: Scarcity and Economic Reasoning Objective: Understand why choices need to be made and things given up Essential Knowledge: Scarcity, Factors of Production, Opportunity Cost, Types of Economies, Production Possibilities Curves (PPC) Warm-up in Notebook Question:  Before a business can start making a product, they have to answer 3 basic questions.  What do you think those 3 questions are?

Unit 1 Part 2 3 Key Economic Questions, Factors of Production, & Group Project

3 Questions every society or country must answer  WHAT to produce  HOW to produce  FOR WHOM to produce

Difference between goods and services  A good is a tangible object. Something you can see, touch, smell, taste, consume, or use. An iPad is an example of a good.  A service is an intangible object. You can’t touch, taste, or feel it. Services are when you hire someone to do something for you.

Become an inventor  In your notebook, make a short list (at least 5) of goods or services you wish were possible or capable of being created.  Examples (don’t use these for your own):  Clicker Remote that freezes time  Time machine  Don’t use money as the product you want to create (Example: Money Tree)

Group of Inventors  Create a small group of people in the class you can work with in and out of class. You will need at least 3 people in your group; no more than 5 people please.  Project Handout – Will be passed out in class.

Group Project: Creating a New Product  Share the ideas each person in your group came up with.  Pick the best idea or combine a few ideas into a better idea.

Four Factors of Production  We can’t satisfy all of our wants and needs BECAUSE what is required to make the goods and services are SCARCE THE FOUR FACTORS OF PRODUCTION (resources)  Land: Where your product will be made/created  Labor: The people hired to create your product  Capital: Physical, Financial, Human (see next slide)  Entrepreneurs: The person/people who combine the other factors of production to create a business. What is the their main goal?

3 Types of Capital (All are needed)  Human Capital: Your skills and abilities  Physical Capital: All the products used to create the final product.  Cheese, sausage, dough, oven, etc. used to bake a pizza  Financial Capital: Money needed to begin a business

Group Project: Part 1 of 4  Each group needs one project handout. Please keep this in the class at all times so it doesn’t get lost or forgotten.  Complete the top of the handout:  Entrepreneurs: Names of people in the group  Name of Company: Be create and appropriate  Name of Product: Be create and appropriate  Functions of the Product: What does it do? What makes it a cool product?

Group Project: Part 2 of 4  Answer the 3 Key Economic Questions:  1. What to produce?  Using the Function of the Product you just wrote, go into more detail about the product. What would you highlight in a commercial?  2. How to make it?  Assembly line? One person making an entire product? Give some details on how you will make this product.  3. Who will buy it?  What specific people would you target in a TV commercial? Men/Women, Teenagers, Lazy People

Group Project: Part 3 of 4  Fill out the information under Factors of Production:  Land: Where will you be making this product?  Labor: What are the qualifications for working in your company?  Capital: What products are used to create your final product?

Group Project: Part 4 of 4  Using the product and information you just came up with in your group, you will be creating a video commercial for your new product.  The content of the video should include all of the information on the handout. Also include the following: Cost of product, how to purchase product (phone, internet, specific store, etc). Continued on next slide ----->

 Videos should be at least 1 minute long and no longer than 4 minutes.  You will be responsible for recording and editing the video. Phones are the most common devices used to record. I recommend recording the entire video on one device only (makes it easier to edit).  If no one in your group knows how to edit video, you can download windows movie maker for free off the internet. It is extremely easy to use.  You will be graded on content, time, originality, and entertainment value.

 You will lose points on this project if there is inappropriate content, language, gestures, etc.  Have fun with this project. It is usually one of the best projects of the semester, but it depends on you and your willingness to create a great video.  Everyone in your group must be in the video in some way.  You will have very little time in class (if any). You will have to meet with your group members outside of school to complete the video.