1. What is economics?
Part one

2. What is Economics?
Economics
Choose
use
Resources
Satisfy
Wants
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)
Gross domestic product (GDP)
standard of living
Goods (objects)
Services (activities)
Gross domestic product
scarcity
choices
What
Produced
Production
How
Distribution
Who
Consume
Consumption
Economic System
Command
Market
Organize
Scarce
Limited
Scarcity
Options
Economics is about how people choose to use their limited or scarce resources to satisfy their unlimited wants (for goods and services).

3. How do people get the resources they need & want?
EQ Essential Question
Economics
How do people get the resources they need & want?

4. What are the 4 types of productive resources (factors of production)?
Economics
Choose
use
Resources
Satisfy
Wants
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)
Gross domestic product (GDP)
standard of living
Goods (objects)
Services (activities)
Gross domestic product
scarcity
choices
What
Produced
Production
How
Distribution
Who
Consume
Consumption
Economic System
Command
Market
Organize
Scarce
Limited
Scarcity
Options
human resources
capital resources
natural resources
entrepreneurship
AKA labor, skills
AKA tools, capital goods
AKA land, raw materials
AKA risk

5. What is Economics? human resources (labor) capital resource (tools)
Choose
use
Resources
Satisfy
Wants
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)
Gross domestic product (GDP)
standard of living
Goods (objects)
Services (activities)
Gross domestic product
scarcity
choices
What
Produced
Production
How
Distribution
Who
Consume
Consumption
Economic System
Command
Market
Organize
Scarce
Limited
Scarcity
Options
Economics is about how people choose to use their limited or scarce resources to satisfy their unlimited wants.
Every society has limited
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)

6. HUMAN RESOURCES
CAPITAL RESOURCES
Human capital
Workers
Skills
Education
Knowledge
Labor
Talents
health
Physical Strength
Capital goods
Tools
Manufactured (factory-made)
Factories
equipment
transportation
Buildings
Roads
Machinery

7. Which are used to produce . . .
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)
Which are used to produce . . .
Goods + Services =
(objects) (activities)
Gross Domestic Product (GDP)

8. How much can you complete?

9. WHY? investing increases GDP & standard of living
Every society has limited
Factors of Production / Productive Resources
human resources (labor)
capital resource (tools)
natural resources (land)
entrepreneurship (risk)
WHY?
investing increases
GDP & standard of living

10. 3 basic economic questions . . .
However, because of scarcity, choices
must be made to answer the
3 basic economic questions . . .
scarcity
choices
What
Produced
Production
How
Distribution
Who
Consume
consumption
What goods & services will be produced?
= Production
How will goods & services be produced?
= Distribution
Who will consume the goods &services?
= Consumption

11. This creates the need for an
Economic System
Command
Market
organize
Economic System
MIXED
(combination)
Command
(controlled)
Market
(free)
to organize production, distribution, and consumption.

12. How a country organizes it’s resources:
Who decides production, distribution, and consumption of goods and services?
MIXED
SOME gov’t control
MARKET
COMMAND
NO gov’t control
FULL gov’t control
Economic Systems
MIXED
LITTLE gov’t control
MIXED
LOTS of gov’t control

13. What is the basic economic problem?
Every society must decide how to make the best use of its limited productive resources. Scarcity, with the resulting need to choose among competing options, is the basic economic problem.