1. Unit 1 Intro. To Economics Lesson 2

2. Review Economics – Macroeconomics - Microeconomics Wants – Physical
- Psychological
Scarcity

3. Resources are used to produce goods & services
Resources: Anything that a country or state can use to produce goods and services.
Goods – objects capable of satisfying human wants/ needs.
- durable goods – TV, car, anything that can last more than a year.
- non-durable goods – food products.
Services – Can be performed but can’t be touched or seen.
- Ex: services of a lawyer, dentist, doctors, mechanic …..

4. All Resources fall in 3 categories:
1. Land
– includes natural resources (mineral, animals, vegetation, and water)
2. Labour
- includes population, variety of skills, level of education, and technical training.
3. Capital
- includes manufactured items that are used to produce goods and services (buildings, factories, equipment, computers, tools, lathes, drill presses, forklift & trucks, transportation vehicles)

5. In Class Activity
Do Categorizing resources Activity

6. Costs Direct costs – out of pocket expenses required to do something.
ex: the direct cost of purchasing a new car might be $30,000.
Opportunity cost – represents the value of the best possible alternative that is given up.
ex: you decide to buy a movie instead of a book. The opportunity cost is the book.

7. Activity Read “The Costs of College Attendance” pg. 10 – 11.
Answer questions 1 – 4 pg. 11

8. Product Possibility Curves
Represents the maximum amount of two products that can be produced using all available resources efficiently.
Copy figure 1.1 pg. 13
Are influenced by population, technology, demand….

9. Do
Assn. 1 due in 2 days