1. Talk It Up
Discuss & agree upon a definition for “good” and for “service” as it pertains to business and marketing.
Identify one example of each.

2. 34 - Identify the difference between needs & wants.
Economic Decisions
34 - Identify the difference between needs & wants.

3. Economics Defined
Study of producing, distributing, and consuming goods and services
Involves decisions regarding the use of resources (natural, human, capital)
Decisions are made by:
Individuals, consumers
Businesses, producers
Societies, government

4. The Economy’s Driving Force
WANTS
NEEDS
Non-essential
Add to the quality of life
a.k.a. luxuries
Private wants
(indiv/groups)
Public wants
(roads, schools, parks)
Essential to human life
Basic needs for survival
Examples: food, water, clothing, shelter
Wants and needs determine what goods and services will be produced by businesses. Individuals (consumers) make decisions on what to buy – they vote with their dollars.
Private wants are what individuals or groups of people desire. Public wants are widely shared by many people (society), such as highways, public libraries, and parks. The government typically satisfies public wants.

5. Table Time!
Think about your current situation as a high school student, teenager, athlete, etc.
Discuss three current wants (W) and three needs (N) in your life.
Think about it! How can the fulfillment of a basic need lead to a want?
Our wants are limited only by our imagination. One want fulfilled leads to more wants – for example, your fresh kicks will satisfy you temporarily, but soon there will be nicer ones.

6. What satisfies our needs & wants?
Goods are things you can see & touch.
Services are satisfied through the efforts of other people.
In order to create goods or to provide a service, you need resources.

7. 36 – Distinguish among the factors of production.
Economic Resources
36 – Distinguish among the factors of production.

8. Economic Resources
are the means through which goods and services are produced.
Economic resources are also known as factors of production.

9. Factors of Production Human Resources Natural Resources
Capital Resources
Factors of production are the three types of resources needed in order to produce goods and services.
Natural – all materials that come from the earth
Human – all the people who work to produce goods and services, including entrepreneurs
Capital – the tools, equipment, and buildings used to produce goods and services
We make decisions about the way that factors of production will be used. These are the resources that are used to meet society’s needs and wants.

10. All materials that come from the Earth (in their natural state)
Factors of Production
All materials that come from the Earth (in their natural state)
Natural Resources
Factors of production are the three types of resources needed in order to produce goods and services.
Natural – all materials that come from the earth
Human – all the people who work to produce goods and services, including entrepreneurs
Capital – the tools, equipment, and buildings used to produce goods and services
We make decisions about the way that factors of production will be used. These are the resources that are used to meet society’s needs and wants.

11. Factors of Production Human Resources
All of the people who work to produce toods and services, including entrepreneurs
Factors of production are the three types of resources needed in order to produce goods and services.
Natural – all materials that come from the earth
Human – all the people who work to produce goods and services, including entrepreneurs
Capital – the tools, equipment, and buildings used to produce goods and services
We make decisions about the way that factors of production will be used. These are the resources that are used to meet society’s needs and wants.

12. The tools, equipment, and buildings used to produce goods and services
Factors of Production
The tools, equipment, and buildings used to produce goods and services
Capital Resources
Factors of production are the three types of resources needed in order to produce goods and services.
Natural – all materials that come from the earth
Human – all the people who work to produce goods and services, including entrepreneurs
Capital – the tools, equipment, and buildings used to produce goods and services
We make decisions about the way that factors of production will be used. These are the resources that are used to meet society’s needs and wants.

13. Economic Choices – Why?
We make choices about how resources are used to meet needs and wants.
Example: U.S. oil supply

14. Natural Resources Raw materials found in nature Examples: Wind Water
Minerals
Plant life
Examples: wind, water, plant life, wild life, natural gas, minerals
Limitations: geographic availability, limited quantity, pollution/contamination, out of season, environmental factors (drought, natural disasters)
Implications: prices go up when resources are limited, which causes prices of goods to go up if they require those resources

15. Natural Resources Limitations Geographic availability Limited quantity
Pollution/contamination
Out of season
Environmental factors
Drought
Natural disasters (Harvey)
Examples: wind, water, plant life, wild life, natural gas, minerals
Limitations: geographic availability, limited quantity, pollution/contamination, out of season, environmental factors (drought, natural disasters)
Implications: prices go up when resources are limited, which causes prices of goods to go up if they require those resources

16. Natural Resources Implications Prices go up when resources are limited
Which means prices of goods requiring those resources also go up
Examples: wind, water, plant life, wild life, natural gas, minerals
Limitations: geographic availability, limited quantity, pollution/contamination, out of season, environmental factors (drought, natural disasters)
Implications: prices go up when resources are limited, which causes prices of goods to go up if they require those resources

17. Human Resources Human effort used for production
Work force includes everyone willing and able to work
How many of you are able to lift 50 pounds or more? 100 pounds? How many of you are willing to go pick up trash?
TV Show: World’s Dirtiest Jobs.
Limitations: Labor shortages result from (1) lack of training or skills needed and (2) lack of interest in certain jobs (i.e., fast food, custodial work)
Businesses can respond by: offering higher wages, offering training or staff development, increase promotions and incentives, increase technology

18. Human Resources Limitations Labor shortages result from:
(1) lack of training or skills needed and
(2) lack of interest in certain jobs (i.e., fast food, custodial work)
How many of you are able to lift 50 pounds or more? 100 pounds? How many of you are willing to go pick up trash?
TV Show: World’s Dirtiest Jobs.
Limitations: Labor shortages result from (1) lack of training or skills needed and (2) lack of interest in certain jobs (i.e., fast food, custodial work)
Businesses can respond by: offering higher wages, offering training or staff development, increase promotions and incentives, increase technology

19. Human Resources Businesses can respond by: Offering higher wages
Offering training and/ or staff development
Increasing promotions and incentives
Increasing technology
How many of you are able to lift 50 pounds or more? 100 pounds? How many of you are willing to go pick up trash?
TV Show: World’s Dirtiest Jobs.
Limitations: Labor shortages result from (1) lack of training or skills needed and (2) lack of interest in certain jobs (i.e., fast food, custodial work)
Businesses can respond by: offering higher wages, offering training or staff development, increase promotions and incentives, increase technology

20. Capital Resources
Physical capital includes other items required for production
Real Estate / Buildings
Machinery
Tools (technology)
Transportation
Physical Capital – buildings, furniture, machinery, tools (computer equipment, technology), transportation, or other items required to produce goods and services
Limitations: maintenance (repair, upkeep), quality, limited usable life

21. Capital Resources Limitations maintenance quality limited life span
- repair/upkeep
quality
limited life span
Physical Capital – buildings, furniture, machinery, tools (computer equipment, technology), transportation, or other items required to produce goods and services
Limitations: maintenance (repair, upkeep), quality, limited usable life

22. Discuss …
Is it possible to produce a good or service using only one resource? Why or why not?

23. Short Break…
Please take a card.

24. For a Limited Time Only…
Now Available!
2 A’s
4 B’s
11 C’s
4 D’s
2 F’s
First come, first serve!
Anyone with an ‘A’ or ‘B’ is guaranteed, no matter what you do the rest of the block. Anyone with a C or D has a starting point & can work to improve by the end of class. Anyone with an F or an incomplete (no grade) has to retake the class next year.
Alternatively: Popcorn Scarcity Activity

25. What Happened?! What did you want? What did you actually need?
What was the fundamental problem?
Is it fair that those who got A’s and B’s don’t have to do anymore work?
How did it make you feel to know you had to try again next year, no matter what you do here today?

26. 37 – Explain the relevance of scarcity to economics.

27. The Basic Economic Problem
Resources limit the number of wants and needs that can be satisfied.
Most consumers in the U.S. can satisfy their basic needs.
Most people have unlimited wants, so we have to make choices.
Basic Needs +
Unlimited Wants
Economic Resources

28. What is Scarcity? Shortage of resources
Conflict between unlimited wants and limited resources
[ Society’s Wants & Needs ] – [ Available Resources ]
As a society, we have to manage choices that affect how wants and needs are satisfied. The way we manage a limited resource like gas can affect other wants and needs. Is there a scarcity of gasoline? Why? How has it affected economic decisions?
Individuals: [ Private Wants – Discretionary Income ]
Businesses: [ Unlimited Wants – Economic Resources ]
Society: [ Public Wants – Economic Resources ]
Your Wants & Needs
Your Income

29. Economic Choices
Economic Decision
Opportunity Cost
Potential Lost
Things Given Up
Your choice
A trade off – weighing costs vs. benefits – occurs when a choice is made between two or more options.
The opportunity cost is what you gave up by choosing one option instead of another.
Every choice has a cost and/or benefit! As individuals, we have to make choices and prioritize our spending.
Example: trade off between going to the movies and finishing your homework

30. Decision Making
If I offer to give you something for nothing, is there a cost?
Does your choice have a cost? What is the opportunity cost?

31. Dilemma of the Day How does scarcity impact individual decisions?

32. Closing Economics – producing, distributing & consuming
Good vs. Service
Wants vs. Needs
Factors of Production
Scarcity
Trade Off
Opportunity Cost