Introduction to Economics Essential Skill: Demonstrate an understanding of Economic Concepts by giving examples Discussion Question (Write-Pair-Share): Why are some people and nations wealthy and others poor?

Question: How did your answers relate to the definitions of Economics and Scarcity? Economics: the study of how people choose to use limited resources to fulfill unlimited wants Scarcity: the condition of not having enough resources to satisfy all of one’s wants

Did any of your answers relate to factors of production (resources)? (land, labor, capital) Natural Resources (“Land”): materials from nature some countries have oil, coal, precious metals, fertile soil, etc. Labor: Workers In some countries workers are more productive than in others. Why? Capital: manmade tools, machines or buildings which are used to create goods or services or make work more productive Industrialized nations have better communications technology than developing countries (also machines and transportation)

Adam Smith “ father of modern economics” Scottish philosopher & economist Published The Wealth of Nations (1776) He argued the best way for society to advance is for people to work for their own self-interest (their own well-being) Do you agree or disagree? Give examples to support your opinion. He also argued that competition is the key to a healthy economy. Do you agree or disagree? Give examples.

Definitions Micro Economics: –The study of the economic decisions and actions of individuals and companies Macro Economics: –The study of the economic systems of countries Economic System: a nation’s way of producing things its citizens want Types of Economic Systems: Command Economy  Mixed Market  Market Economy Video link (highlight some ideas in your reading notes)Video link

Discussion Question Write-Pair-Share: Why do prices often end in 99 cents? Definition Incentive: something that motivates or encourages someone to do something Give examples of some incentives

Fill in the Chart People Choose: people must decide how to use their resources Example?: Choices involve Costs: people weigh the costs of choosing one thing over another Example?: Incentive: An incentive is something that motivates or encourages someone to do something Example?: Economic Systems: a nation’s choices influence individuals’ choices Example?:

Fill in the Chart Voluntary Trade: Money can be made by meeting consumers’ demands and allowing companies to decide what/how to produce Example?: Future Consequences: Choices will affect others’ decisions. Did the benefits outweigh the costs? Example?: DIRECTIONS: COMPLETE the CHART with answers from the Popcorn Enigma