Essential Question: SECTION 1 An Economic Way of Thinking Define the term economics, explain the difference between goods and services, Identify and give examples of the factors of production and explain the goal of entrepreneurship

Economics SECTION 1 An Economic Way of Thinking Economics is the study of the choices that people make to satisfy their wants and needs utilizing SCARCE resources. Originally economists would have studied people hunting, gathering, or scavenging. Now economists study exchanges between individuals (products exchanged for MONEY)

Goods vs. Services SECTION 1 An Economic Way of Thinking In society we produce goods and services to exchange for money in order to get what we want. Good- Physical item that satisfies a want or a need Service- Act or action done for a fee that satisfies a need or a want. https://www.youtube.com/watch?v=hriOz9y l-Ro

Resource: SECTION 1 An Economic Way of Thinking A resource is any item that can be utilized to make OR obtain goods or services Most resources have a limited supply

Factors of Production: SECTION 1 An Economic Way of Thinking Factors of Production: There are four factors of production or the things necessary to produce goods or services natural resources- example- trees, metals, oil human resources- example- miner, car salesperson, teacher. capital resources- cash register, factory, semi-truck entrepreneurship

Factors of Production: Cont. SECTION 1 An Economic Way of Thinking Factors of Production: Cont. Entrepreneurship! This last factor is important since it’s goal is to use the other 3 factors of production to create a new product (good or service) Why? Resources are limited and new products or production methods use resources more efficiently or improve life.