1. Vocabulary  Economics- The study of making decisions in a world with limited resources.  Scarcity- The fundamental economic problem.  Factors of Production- Resources necessary to produce goods & services.  Productivity- The rate at which resources can be turned into goods/services.  Entrepreneur- Someone who starts a business.

2. Warm up?  What is the difference between something that you need and something that you want? Give an example of something you need and something that you want.

3. Economics

4. What is economics?  The study of how we make decisions in a world where resources are limited  AKA the science of decision making

5. What is the fundamental problem with economics?  SCARCITY  When we do not have enough resources to produce all the things we would like to have  You have to make choices among the alternatives  Needs: things required to survive such as food, water and shelter  Wants: things we would like to have such as tv, internet, video games, etc.

6. When starting a business you must ask yourself 3 questions:  1. What to produce  Have to figure out what products are needed right now and are the resources available  2. How to produce  How are you going to make the good  3. For whom to produce  Who is your targeted audience? Older people, babies, teenagers, young adults, etc.

7. What do economists use to collect data?  Economic models  Simplified representation of the real world that are used to explain how the economy works or to predict if your product would survive the market  Problem: based on assumptions

9. You want to open up a new business but you’re not sure what to sell.

10. What to provide?  Goods  Tangible products like books and cars Or  Services  Work that is performed for someone else  Exp: Haircuts, garbage pickup

11. Factors of Production  Resources necessary to produce goods and services  4 kinds  Natural resources (land)  Labor  Capital  Entrepreneur

12. Natural Resources  Refers to all the gifts of nature  fertile fields, rainfall, forests, mineral deposits, etc.  Can be renewable or non- renewable  Renewable resources can be replenished over time…Ex: trees, sunlight  Nonrenewable resources is a resource that cannot be replenished over time…Ex: oil

13. Labor  The nation’s labor force or human resources  Refers to both the physical and mental efforts that people contribute

14. Capital  The tools, machinery, and buildings used to make other products  EXP: bulldozers, trucks, hammers, saws, drills, etc.

15. Entrepreneur  The person who starts the new business

16. Productivity  This is the rate at which resources can be turned into goods/services.  Increased productivity means more goods/services available to buyers and financial rewards for laborers

17. reflection  What is economics?  What is the fundamental problem with economics?  What 3 questions should you ask yourself when starting a business?  What do economists use to collect data?  Summarize the difference between goods and services.  What are factors of production?  What are the four kinds of factors of production?  Summarize the difference between renewable and nonrenewable resources.  What two attributes are a part of labor?  What are examples of capital?  What is an entrepreneur?  What is productivity?

18. Activity  Create a pamphlet for a potential business you’d like to open. Your pamphlet must containing the following:  Four Factors of Production with definitions  3 Examples for each factor of production as they pertain to your business  Explanation of what will happen to your business if you experience a scarcity in that factor.  Illustration (picture) for each.

19. Closing?  What would life be like if no economic scarcity existed?