1. Economics

2. Economics Defined
Economy: the organized way a nation provides for the needs and wants of it’s people
Economics: the management of the production, distribution and consumption of goods and services
meeting unlimited wants with limited resources

3. Economic Activities Production: Make It! Consumption: Use It!
Exchange: Trade It!
Distribution: Give It Out!

4. Economic Resources Human Resources (entrepreneurship)
Natural Resources
Capital Resources

5. Human Resources People Examples:
Full-time
Part-time
Seasonal
temp
There may be a shortage of workers for a certain job or profession:
People lack training or skills needed
People are not interested in filling certain jobs

6. Natural Resources
Resources found in nature that can be used to produce goods or services
Examples:
Wildlife
Plant life
Weather conditions
Minerals
Natural gas
Natural resources become economic resources when used in production of goods and services

7. Capital Resources Used to produce a finished product
Reflects the state of technology that exists in society
Examples:
Machinery
Buildings
Transportation
Furniture,
Computer equipment (technology)

8. RESOURCES Economic Resources HUMAN NATURAL CAPITAL
Why is resource limited?
Must be willing and able, lack of training
HUMAN
Earth is finite, pollution, wrong season, drought
RESOURCES
NATURAL
Break (need repair), don’t last, poor quality
CAPITAL

9. Human Resources Affect on Business
How do employers deal with a shortage of workers for a certain job or profession?
Offer higher wages
Offer training and retraining
Increase promotions/incentives
Increase technology

10. Natural Resources Affect on Business
All natural resources are limited
Some of the earth’s resources are difficult and costly to obtain
Not all countries have the ability to tap into all of their natural resources (lack technology and equipment)
When natural resources are limited, prices go up on products that require these resources (gas)

11. Capital Goods Affect on Business
Companies try to maintain the capital goods they already have to minimize cost
Companies look for alternative capital goods to increase profit and get an edge of competitors
They modify current technology to become more efficient

12. Three Economic Questions
What countries ask themselves when considering economic decisions
What product or services to produce?
How to produce those products and services?
For whom to produce the products and services?

13. Goods and Services Goods: Tangible Services: Intangible Can touch item
Cannot touch item

14. Needs vs. Wants Needs: something you have to have (required)
Water, clothing, food
Wants: something you would like to have (desire)
Designer clothes, sports car

15. Economic Wants Non-economic Wants: Economic Wants:
Love, winning, good grades
Economic Wants:
Material items, food

16. Scarcity Unlimited Wants MINUS Limited Resources EQUALS Scarcity
The difference between what consumers want and need and what the available resources are.
Unlimited Wants
MINUS
Limited Resources
EQUALS
Scarcity

17. Economic Choices
Trade off: Having to make a choice between two or more things
Opportunity Cost: Everything you gave up by making that choice
Trade Off
Option A
Option B or
Opportunity Cost

18. Activity
Use the Local paper to analyze the 3 types of Economic Resources (Human, Natural, Capital)
Find at least 2 examples of each resource
List page number & newspaper date/week
Define its impact on the local economy
Human
Natural
Capital
Find at least 2 examples of each resource
List page number & newspaper date/week
Define its impact on the local economy