INTRODUCTION TO ECONOMICS WANTS and NEEDS

WHAT IS ECONOMICS AND WHY SHOULD I CARE? In your notebook answer the questions. When the music stops speak with your shoulder partner. Why should we study economics/PFL? What do you want to learn from this class? What is your definition of economic success? How has economics already affected you?

ECONOMICS  The study of how people choose use their resources.  What does this definition lack?  What do you want to add?  Ultimately we use the term economics to cover individual/personal, business, and governmental.  According to the Federal Reserve economics is, “the study of the production, consumption and distribution of goods and services.”  Think about it in terms of NEEDS and WANTS  In your notes make a list of three NEEDS and three WANTS

THE BASICS OF ECONOMICS In your notebook write a two part definition of the following.  A two part definition is using both the textbook/dictionary/slide definition AND using your own words, picture, or phrase that is completely different from you’re the textbook/dictionary.  For example: Recession- A decline in total production lasting at least two consecutive quarters, or at least six months. I stopped turning homework last semester and my grades suffered. Terms: Scarcity Services Goods Opportunity Cost Human Resources Natural Resources Private goods Public goods Private goods

SCARCITY (PAGE 6) A condition facing all societies because there are no enough productive resources to satisfy people’s unlimited wants.

GOODS AND SERVICES (PAGE8) Goods- An item that is tangible. Service- Something that is NOT tangible. List three of each a good and service. Getting your hair done Shoes Shirt Mowing your neighbors lawn Painting your house

RESOURCES Resources can be many things. Overall, resources are things used to make goods and services.  Human resources- Human efforts both physically and mentally to produce goods and services.  Natural resources- Naturally occurring materials used to make goods and services.  Capital resources- goods made and used to create other goods and services.

OPPORTUNITY COST (PAGE20) The value of the best alternative passed up for the chosen item or activity. What had to be sacrificed?