1. economics
Study of the choices people make when faced with scarcity

2. scarcity
Unlimited wants with limited resources

3. ANYTHING YOU DO NOT HAVE!!!
What is scarce ?
ANYTHING YOU DO NOT HAVE!!!

4. Resources are “scarce”. There are not enough.
AGREE OR DISAGREE?
Resources are “scarce”. There are not enough.

5. RESOURCES
ARE
SCARCE

6. Needs vs. Wants survival like or desire Water Coke Food Pizza Hut
Shelter mansion
Clothing Abercrombie

7. Need or Want? Chocolate milk Milk for a newborn baby Hairspray
Toothpaste
Shelter during winter
Car
Ipod
water

8. 3 Basic Economic Questions
1. What to produce?
2. How to produce?
3. For Whom to produce?

9. Factors of Production
What went into making this? 9

10. What went into this? Rubber (from Malaysia) machines metal
Someone who put all of this together.
wood
graphite 10

11. 4 Categories of Productive Resources (Factors of Production)
LAND LABOR
CAPITAL ENTREPRENUERSHIP
Natural, renewable resources
wood, rubber, graphite, land, animals
Human resources, people
MENTAL and PHYSICAL
A produced good used in the prduction of another good
Machines, computers, buildings, etc
The person or group responsible for putting the other 3 together to produce something 11

12. Factors of Production
Land: includes not only property on which a production plant is built, but all other natural resources. (land, forests, water resources, oil)
2. Labor: is the contribution of human workers to the production process. (school teachers, janitors)

13. Factors of Production
3. Capital: refers to all the structures and equipment involved in the manufacturing process. (machinery storage, transportation)
4. Entrepreneurship: is a specific form of labor. A risk-taker in search of profits who does something new with existing resources.

14. Draw picture to represent Human Resources List examples
Natural Resources:
List examples
Draw picture to represent
Human Resources List examples
Capital Resources
Entrepreneurship
Think of a product

15. How are scarce resources allocated?
Our economic system allocates resources by price.