1. Economic Fundamentals
Productive Resources/Factors of Production

2. Our enduring understanding…
Economics is…
scarcity forcing us to make decisions about allocating limited resources to get the unlimited number of things we want.

3. Scarcity…
is the fundamental economic problem. Basic condition that exists when unlimited wants/needs EXCEEED limited resources. Items are only scarce if they are LIMITED and DESIRABLE

4. Determining Scarcity Limited ? Time Water Garbage Desirable ? Scarce ?
Breathable Air
Garbage

5. Capital (capital goods)
Productive Resources
Natural (land)
Human (labor)
Capital (capital goods)
Entrepreneurship
Productive Resources / Factors of Production synonymous
Natural Resources (Land)
Anything given to us by the earth.
Student examples
Human Resources (Labor)
The human effort made to produce a product
Examples: Student led
Encourage students to share their jobs
Capital:
Something used to make a final product
Must be reusable
Tool used to make good/service
Physical: oven, alternator, pencil, computer, internet service, etc
Human: education/training a worker receives to do their job ex: college, on the job training
Entrepreneurship: risk taken to invent/improve a product. Motivated by one or more of the following.
Profit
Job creation
Innovation
Improve Society

6. Natural Resources
Have students observe and identify the factors of production using Chik-fil-A

7. Human Resources
Have students observe and identify the factors of production using Chik-fil-A

8. Capital Good
Have students observe and identify the factors of production using Chik-fil-A

9. Entrepreneur
Have students observe and identify the factors of production using Chik-fil-A

10. Productive Resources

11. Group work activity

12. Producers and Consumers
Goods and Services ∞
Producers and Consumers
People use these 4 productive resources to produce goods and services that other people want (hopefully) and will consume. The producer then earns a profit if the production costs are less than the selling price that consumers are willing and able to pay.

13. how can we decide who in your group gets that Snickers bar?
Everyone wants that delicious Snickers bar….so
how can we decide who in your group gets that Snickers bar?