1. Make a list of 10 things you want!!!
Chapter 1 Notes
Make a list of 10 things you want!!!
What is the difference between a “Need” vs. a “want”?

2. Scarcity
The Economic Problem

3. SCARCITY
Limited
Resources

4. SCARCITY
Unlimited Wants

5. Economics Is…
The study of limited resources but unlimited wants, which forces people to make a CHOICE!

6. Opportunity Cost
How much does it cost you to “attend” this particular “class session”?
Think about it! Before going on, try to come up with an answer to this question. Talk with a partner.

7. Opportunity Cost
To answer the question, you should have asked yourself what else you could be doing during this time?
Next, prioritize all of these other activities.

8. Opportunity Cost
The first item on your list of alternative activities is the opportunity cost of attending this class.
Every activity has a cost - what you gave up.

9. Opportunity Cost
Because resources are scarce, choices need to be made.
Choice results in cost.
The largest cost of any choice is what you had to give up.
This is called Opportunity Cost.

10. Daily Warm Up : Marshmallow Video
Questions: What is the opportunity cost for the children who ate the marshmallow first?
What is the opportunity cost for the children who did not eat the marshmallow?
Write about a time you chose “instant gratification” over “delayed gratification.” What was the opportunity cost of this decision?
What is the value of self-discipline?

11. Economics: TWO BRANCHES
Microeconomics Macroeconomics
“Small Picture” “Big Picture”
Study of individual Study of the economy units as a whole.
Looking at one thing Concerned with the at a time TOTAL picture
Individual decision making Societal decision making

12. Four Factors of Production
Land-natural resources – oil, water, wood, iron, gold. etc
Labor-human resources - an individual providing his/her services for wages
Capital-capitial resources - equipment that can be used for production
Entrepreneurship-someone that uses the first three resources to make a profit. Considered to be a “risk taker” and business leader.

13. Copy the Table in your Spiral Notebook!!!
Land
Labor
Capital
Entrepreneurship

14. Determine which of the four factors of production it falls under:
Computer
Forests
Cab driver
Bakery Store Owner
Petroleum
Automobile
Brain surgeon
Factories
Tractor
Highway system
Radio
Mountains
Small restaurant owner
Minerals
Pencil
Computer software developer
Waitress
Ocean
Fish

15. Come Up With 3 Examples of Your Own and include it in your table
Land:
Labor:
Capital:
Entrepreneur:

16. Due to scarcity, every Society Must Answer 3 Questions:
What goods shall we produce?
How shall these goods be produced?
For whom should the goods be produced?

17. In the U.S. the three Qs are answered as follows:
WHAT TO PRODUCE? U.S. production leans towards consumer goods & service
HOW TO PRODUCE? U.S. believes in private enterprise (corporations and small businesses privately owned)
FOR WHOM TO PRODUCE? U.S. production leans towards the large middle class

18. Collage of the Four Factors of Production
Create a collage that illustrates the four factors of production.
Divide your paper into 4 equal parts, and have each “box” represent one of the four factors of production. Label one under each box.
Find pictures that fall under each category.

19. THE FOUR FACTORS OF PRODUCTION
Land
Labor
Capital
Entrepreneurship

20. What is Economics: Activity
Choose a profession that you would like to enter.
Identify the following:
What good/service will you provide?
How does this good/service satisfy a need or want?
Which productive resources will you use?
How can you tell that these resources are scarce?
Share with a partner