1. Bell-Work
Think of your favorite product and identify the resources that are used to produce it.
Example: Pre-washed salad. Vegetables are natural resources. Labor resources include growers, packagers, and truckers. Capital resources include the food preparation and distribution centers. The people that thought of “salad in a bag are entrepreneurial resources. (this is my example)

3. Objectives
Explain how scarcity requires individuals and nations to make decisions about resources.
Describe the four factors of production.

4. The Main Idea
Both people and countries must deal with the problem of scarcity. Nations do not have enough factors of production to produce everything that their population wants. Factors of production are all the economic resources necessary to produce a society’s goods and services.

5. Key Concepts
Making Economic Decisions
Factors of Production

6. Key Terms
scarcity
the lack of resources
all the economic resources necessary to produce a society’s good and services
factors of production

7. Key Terms
natural resources
raw materials from nature that are used to produce goods
labor resources
people who make the goods and services for which they are paid

8. Key Terms
capital resources
things used to produce good and services
resources used by the people who recognize a business opportunity and start a business
entrepreneurial resources

9. Key Terms
The process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business
entrepreneurship

10. Key Terms
An individual who undertakes the creation, organization, and ownership of a business
entrepreneur

11. Making Economic Decisions
The principle of scarcity states that there are limited resources for satisfying unlimited wants and needs.
scarcity
a lack of resources

12. Graphic Organizer
When dealing with scarcity, it is important to think of the best way to use the item that is in short supply.
Demand
Supply

13. There are four factors of production.
all the economic resources necessary to produce a society’s goods and services

14. Graphic Organizer Natural Resources Labor Resources Capital Resources
Entrepreneurial Resources

15. Natural resources can be processed in various ways to create goods.
raw materials from nature that are used to produce goods

16. Graphic Organizer Wheat Cattle Coal Iron Oil
Renewable resources can be reproduced
Nonrenewable resources are limited
Wheat
Cattle
Coal
Iron
Oil

17. Being Resourceful
During the world oil crisis in 1973, Japan was able to reduce its dependence on oil and enhance productivity through conservation and alternate sources of industrial energy.

18. Labor resources can be skilled or unskilled, physical or intellectual.
people who make the goods and services for which they are paid

19. Capital resources are also called capital goods.
the things used to produce goods and services, such as buildings, materials, and equipment

20. Capital Resources
Examples of capital resources include:
Delivery trucks
Supermarkets
Cash registers
Farm equipment

21. Entrepreneurial Resources
Entrepreneurial resources meet society’s changing wants and needs.
entrepreneurial resources
resources used by the people who recognize opportunities and start businesses

22. Entrepreneurial Resources
Entrepreneurship is necessary when starting a business.
entrepreneurship
the process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business

23. Entrepreneurial Resources
An entrepreneur accepts the risks and responsibilities of business ownership.
entrepreneur
an individual who undertakes the creation, organization, and ownership of a business

24. Entrepreneurial Resources
Entrepreneurial resources are individuals who start and direct businesses to produce goods and services to satisfy needs or wants.
Labor resources are people who produce the goods or services.

25. Why do all nations face the problem of scarcity?
No nation has enough resources to satisfy all of its wants and needs.

26. Identify one similarity and one difference between labor and entrepreneurial resources.
Entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

27. List five different natural resources.
Answers will vary. Examples include water, oil, iron ore.

28. Activity
Write a one page profile about an entrepreneur and use all the key terms in this section.
scarcity
natural resources
entrepreneurial resources
factors of production
labor resources
entrepreneurship
capital resources
entrepreneur

29. Key Concepts
Making Economic Decisions
Factors of Production

30. Exit Ticket
Why do all nations face the problem of scarcity?
List five different natural resources
Please list any confusions that you may have with any of the topics covered in today’s class. If you understand the material, please indicate one thing that sparked your interest.

31. End of