1. Economics

2. The Factors of Production
Natural Resource
Capital Resource
Human Resource
Entrepreneur

3. Scarcity
There are not enough resources for everyone to have everything that they want.
Scarcity means that resources are limited
Do we have a scarcity of Dog poop in the room?
What about $100 bills?

4. Because Resources are scarce 3 economic questions must be asked
What to produce?
How to Produce it?
And for Whom to Produce (Who gets what is made)?

5. There are two basic types of Economic Systems that answer those questions
Market Economy
Command Economy

6. Market Economy
Consumers and Producers own the resources and decide how to best use them and who gets them
Key words:
Price
Competition

7. Command Economy
The Government owns the resources and therefore the government decides who gets what
Key Words
Control
Orders
Command
Limits

8. This makes sense If you own your own house what can you do with it?
If you rent your house what can you do with it?