Economics August 4, What is the basic fundamental economic problem facing society? 2.What is the difference between a good and a service? 3.What do the following have in common: Bill Gates, Oprah Winfrey, Steve Jobs, and Truett Cathy? 4.What does TINSTAAFL stand for? 5.List four things you buy on a regular basis and draw a picture of each on your copy paper. 6.Open your envelope. Pretend you have that item. Are you happy or unhappy? Why?

Factors of Production Land-natural resources from the Earth

Examples of Land

Factors of Production Labor-workers

More Labor…

Factors of Production Capital (Physical Capital)-tools used in production

Examples of Physical Capital…

Factors of Production Capital (Human Capital)-an investment in yourself (education or training)

Examples of Human Capital…

Factors of Production Entrepreneur-risk taker in search of profit.

More Entrepreneurs…

Types of Goods Consumer Goods- intended for final use by individuals.

Types of Goods Capital Good-used to produce other goods.

Types of Goods Durable Goods-lasts more than 3 years.

Types of Goods Non Durable Goods- less than 3 years.

Conspicuous Consumption Buying an item to impress someone.

Goods and Services

Assignment On the back of your construction paper, determine the four factors of production for the four items that you have drawn during the bellringers. List these four factors for each item on the back.

Ticket Out the Door 1.Define entrepreneur. 2.Define land. 3. How is labor paid for? 4.What is the difference between a need and a want? 5.List the four types of goods and give an example of each.

#6 A factory building is considered to be part of which of the following factors of production? Capital Labor Land Entrepreneurship

#7 Linda wants to start a health food store and she got a loan from the bank. Linda is considered to be what type of factor of production? Labor Land Capital Entrepreneur

#8 Which of the following would be most likely to increase human capital? The development of robotic arms. Flu vaccinations More access to television. Computer solitaire games on the employee’s workstations.

#9 Belinda has a business making steel ornamental lawn structures. The arc welder that she uses to join pieces of steel together is considered what? Human capital Entrepreneurship Labor Capital

#10 Donald works as an accountant for a large corporation. Which of the following terms would best describe him in this role? Entrepreneur Firm Laborer Consumer