1. Basic Economic Concepts
Mr. Rosenstock
Economics
San Fernando High School

2. 1. Copy the lists of words as written below 2
1. Copy the lists of words as written below 2. Discuss with a neighbor & answer the questions below
Trident chewing gum
A bath towel
a pair of Vans
Contact lenses
iPhone 6
42” LCD TV
4 dinner forks
Lip gloss
Handcuffs
A box of rulers
Stethoscope
Cart with 20 laptops
Boots with non-slip soles and steel toe
Circular saw
Spalding basketball
Rubber-cased flashlight
1.) What do you think the items in both lists have in common?
2.) What might each list represent?

3. Goods, Services and Consumers
Economics is concerned with economic products: any good or service that commands a price
a good: is an item, economically useful and/or satisfies a need or want
a book, car, double cheeseburger from In N’ Out
Consumer good: a good that is intended for use by individuals (consumers…people who use/consume goods & services)
Capital good: when a good is used to produce other goods or services (ex: a robot welder, an oven in a bakery)
Service: work that is performed for someone
barber, plumber, lawyer, professional tennis player, phlebotomist, etc
Question: what is the difference between a good and a service?

4. Value, Utility and Wealth
Q1: what is value?
Value refers to a worth that can be expressed in dollars and cents
Q2: why are some things worth more than others?
the scarcity (rarity) of something affects its value
The utility of something affects its value
Utility is the usefulness of something to someone
it is untouchable and it varies from person to person
Wealth: the accumulation of those products that are tangible, useful, scarce and can be transferred from one person to another
Exit question: what is the relationship among scarcity, value, utility and wealth?

5. Division of Labor, Specialization and Economic Interdependence
Division of Labor: is when work is arranged so that workers perform fewer tasks than before (ex) assembly line in a factory
Advantage:
leads to proficiency and specialization
This makes production more efficient
Disadvantage:
Work is repetitive and boring
Repetition of tasks increases chances for injury in workplace
Investing in Human Capital: Government and business can support and improve productivity in people by investing in education, health care, providing training, day care to families, etc.