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 What is economics?  Why are so many resources so scarce?  What are the 5 main types of resources?

 Economics the study of using scarce resources to fulfill wants and needs.  Resource anything used to make or obtain wants or needs  Scarcity resources are finite (limited)  Wants things we don’t need

 1) Land natural resources including surface land and subsurface deposits  2) Labor people who work  3) Capital stuff people use to make goods and services  What are some examples of capital?

 4) Entrepreneurship the initiative of the individuals who develop new business and industry  Land, labor, capital and entrepreneurship together are known as factors of production  5) Technology using science to improve production or productivity

 Goods what people buy  Services what your business or industry does for people

 Using what you now know about factors of production as they relate to economics come up with your own business or industry  Include:  What type of business or industry will you run?  What resources you will require? (land, labor, capital, entrepreneurship, technology)  Which resources will be plentiful? (easy to acquire) and which will be scarce? (difficult/expensive to acquire)

 Drawing on your new knowledge of the definition of economics and our class discussion, students will answer the following questions for homework:  a. Name four things you know about economics.  b. How does economics relate to your life? How does it affect your family?  c. How do you affect resource scarcity? What role does your family play?  d. Write a paragraph using the following opening sentence: “Everyone makes economic choices.”