Focus People have virtually unlimited needs and wants, and there are not enough resources available to satisfy them. People must therefore decide who is going to get the available resources through a process called economics. Question for discussion: What is economics?

What is Economics? Economics – The study of how people seek to satisfy their needs and wants by making choices. Scarcity – Limited quantities of resources to meet unlimited wants.

Key Idea SCARCITY is the fundamental starting point for thinking economically There are not enough resources to satisfy everyone’s needs and wants, and so we must decide who gets what, where, and when. Scarcity is NOT a shortage. A shortage occurs when consumers want to buy more of a particular good or service than is currently available.

Needs vs. Wants Need – Something that we must have in order to survive. Ex.: Water, clothing, air Want – Something that we would like to have, but don’t need to survive. Ex.: TV, drum set

Daily Writing Prompt Tuesday: What is scarcity? Wednesday: What is the difference between needs and wants?

What are the last 3 things you bought? Question What are the last 3 things you bought?

Goods vs. Services Goods – physical objects Ex.: Shoes, computers Services – actions or activities that one person performs for another. Ex.: Haircuts, tutoring, checkup

The Factors of Production Factors of Production – the resources that are used to make all goods and services. Land, Labor, and Capital (& entrepreneur)

Factors of Production cont. Land – All natural resources used to produce goods and services Labor – The effort that people devote to a task for which they are paid. Capital – Any human made resource that is used to produce other goods and services. Physical capital – human made objects Human capital – knowledge and skills gained through education and experience.

Entrepreneurs Entrepreneur – Leaders who decide how to combine land, labor and capital resources to create new goods and services. Examples of Entrepreneurs: Bill Gates Steve Jobs Ray Kroc Dave Thomas Sam Walton

What will I need to open a pizza place? Nappo Pizza What will I need to open a pizza place?

What are the factors of production? Daily Writing Prompt What are the factors of production?

Young Entrepreneurs Describe the business: What good or service is being produced? How does the good or service help people fulfill their needs and/or wants? Identify the factors of production (land, labor, and capital) used to create this good or service.

Do Now Answer questions 2,-5, 7, and 9 on page 7