1. What is economics?
Economics is the decisions about how to distribute limited resources to satisfy unlimited wants

2. Every society has limited productive resources
Natural Resource (land)
Human Resource (labor)
Capital Resource (tools) +
Entrepreneurship (risk)
Which are used to produce
Goods &
(objects)
Services
(activities)

3. Natural Resource (land), Capital Resource (tool), Human Resource (labor), or Entrepreneurship (risk) ?

4. NATURAL RESOURCES (land)
Raw materials; made by nature
Used to make other goods
Ex. trees, oil, water, minerals
Goods used to make other goods
Ex. tools, machines, factories
More & better capital goods help workers to make products more quickly and more cheaply
CAPITAL RESOURCES (tools)

5. HUMAN RESOURCE/CAPITAL (labor)
A worker’s health, education, experience, training, skills, and values
Ex. social studies class, a computer training course, medical care, & parent lectures about being on time and honesty
Raise salary, improve health, or add to a person’s good habits

6. ENTREPRENEURSHIP (risk)
The rare mixture of the qualities needed to create and run businesses.
People who have these qualities risk their time, money, and energy to make a profit.
An entrepreneur recognizes human wants and takes risks to provide a good or service to satisfy those wants.
They might create new products, come up with new ways to make things, or find new ways to reach buyers
ex. Bill Gates (Microsoft), Ben & Jerry (ice cream), ___________(Facebook)

7. Decide whether the following pictures are an example of a natural, capital, human resource, or entrepreneurship.

8. GOODS & SERVICES

9. GOODS (objects)
have shape and can be seen & touched
can be stored for later use
Ex. cars, clothing, & machines
SERVICES (actions)
cannot be touched
must be used as soon as they are provided
Ex. hair styling, medical care, and equipment repair do not have a physical presence

11. Every society has limited productive resources
Natural Resource (land)
Human Resource (labor)
Capital Resource (tools) +
Entrepreneurship (risk)
Which are used to produce
Goods &
(objects)
Services
(actions)