1. Economics

2. Preview Activity What are 3 things that you need?
What are 3 things that you want?
Do you have everything you need? Explain
Do you have everything you want? Explain

3. What is Economics?

4. choices ownership goods services
People make _________ about how to use limited resources, decide the __________________ of resources, and structure markets for the distribution of ___________ and _______________.
choices
ownership
goods
services

5. The inability to satisfy all wants at the same time.
scarcity
The inability to satisfy all wants at the same time.
All resources and goods are limited. This requires that choices be made.

6. Selecting an item or action from a set of possible alternatives.
choice
Selecting an item or action from a set of possible alternatives.
Individuals must choose/make decisions about desired goods and services because these goods and services are limited.
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7. opportunity cost
What is given up when a choice is made (the highest valued alternative foregone)
Individuals must consider the value of what is given up when making a choice. OR
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8. resources Natural human Capital
Factors of production that are used in the production of goods and services.
Entrepreneurship
Natural
human
Capital

9. anything found in nature
Types of Resources are:
Vegetables
water
Natural
Fruit

10. anyone who works for pay
Types of Resources are:
Human
Any Employee

11. items used to make products that are not in the final product
Tools
Capital
buildings
money
machines

12. anyone who owns a business
Entreprenuership
Types of Resources are:
Business Owners

13. Things that incite or motivate
incentives
Things that incite or motivate
Incentives are used to change economic behavior.

14. demand
the amount of a good or service that consumers are willing and able to buy at a certain price.

15. supply
supply
the amount of a good or service that producers are willing and able to sell at a certain price.

16. the amount of money exchanged for a good or service.
price
the amount of money exchanged for a good or service.
Interaction of supply and demand determines price.
Price determines who acquires goods and services.

17. $ $ Interaction of Supply & Demand Determines Price
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Determines Price

18. Click pic for video
production
the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services.
Resources available and consumer preferences determine what is produced.

19. Using goods and services.
consumption
Using goods and services.
Consumer preferences and price determine what is purchased.

20. Complete the Processing Activity