1. Economic choices and decision making
Economics 1.1
Economic choices and decision making

2. What is the fundamental economic problem ALL societies must face?
Scarcity
What is the fundamental economic problem ALL societies must face?
Society's Limited Resources
People’s Unlimited Wants
Resources- any available means for economic or political development
Want- something we would like to have but that is not necessary for survival

3. Thanksgiving
Society's Limited Resources
People’s Unlimited Wants

4. What We Know We Know…I think
Fundamental Economic Problem
Society’s limited resources
Scarcity
Making Choices
Individual’s unlimited wants
Is which consists of which makes us how do we chose? Now what? What do we need to produce?

5. Three Basic Economic Questions What to Produce? How to Produce?
For Whom to Produce?
AHHH… What do I do?
What we know:
We live in a world with relatively scarce resources, we need to make careful economic choices about how we use these resources.
“How do we do that ?” you ask.

6. What is a society going to produce?
What to Produce?
What is a society going to produce?
Military vs Education
Food vs Housing
Exports vs Keeping what they produce for themselves
What are we going to produce?
Food
Thanksgiving’s What to Produce?
Pumpkin Soup
Salad
Roasted turkey
Cranberry salad
Gravy
Mom’s stuffing
Mashed potatoes
Baked potatoes
Sweet potatoes
Green beans
Carrots
Squash
Rolls
Pumpkin pie
Condiments

7. How are we going to produce it?
Now that a society knows what they will be producing, now we can ask, “How are we (society) going to produce it?”
What to produce- Food
How are we going to produce it?
United States- through corporate farms, large machinery and limited chemicals
N. Korea- state owned farms, lots of laborers and lots of chemicals
How to Produce?
Thanksgiving’s How to Produce
Some food home grown (squash, onion, potatoes, and corn from my garden)
Some food made from scratch
Some foods bought ready made (rolls)
With machinery when possible
Slave labor (Devon and Jeremy)

8. Now that a society knows what they want to produce and how they are going to produce it, they ask the question, “Who are we producing for?” Who is going to receive what we produce?
What to produce- Food
How are we going to produce it?
United States- through corporate farms, large machinery and limited chemicals
N. Korea- state owned farms, lots of laborers and lots of chemicals
For whom to produce?
United States- locally, nationwide and world wide
N. Korea- the upper echelon of society and than export all the rest of the food (have mass domestic famine/starvation for the general population)
For Whom to Produce?
Thanksgiving “For Whom to Produce”
My family
My peeps
Anyone else who has not tasted my cooking before and agrees to come over for Thanksgiving

10. What We Know We Know…I think
Fundamental Economic Problem
Society’s limited resources
Scarcity
Making Choices
Individual’s unlimited wants
What to produce?
How to produce?
For whom to produce?
Is which consists of which makes us how do we chose? Now what? What do we need to produce?

11. Practice Time
Cuba is a nation/state island that lies off the coast of Florida. Cuba produces mostly exports which include: cigars, sugar, nickel, tobacco, fish, citrus, and coffee. Imports include food, fuel, and clothing. The government employs most of the workers in Cuba, and the workers are poorly paid and work on labor-intense farms tending to the country’s exports. In general, the people are poor and under nourished, as there is a food shortage. The countries exports give the government officials a lot of money and they live very well.

12. We’ve answered the questions, now what?
What do we know:
We know that we have limited resources and unlimited wants which is scarcity , and every society needs to deal with it.
We know the three economic questions that need to be answered.
We’ve answered those questions so we have a plan of action.
What do you do after you complete a plan of ACTION!
Now we ACT!! Now we can manufacture/produce.
We’ve answered the questions, now what?
I’ve got NO idea

13. 4 Factors of Production Now let’s get producing!!
In order to produce any product, all four factors, or elements contributing to a particular result or situation, must exist.
Entrepreneur
Land
Capital
Labor

14. Come up with new ideas or inventions
A risk-taking individual in search of profit (individuals or government)
Starter of a business
Come up with new ideas or inventions
They normally organize the other factors of production
Entrepreneur

15. Create the new products Create the new businesses Create new jobs
Why are they important?
Create the new products
Create the new businesses
Create new jobs
Whose the entrepreneur in the Thanksgiving situation (who’s the boss?)
ME!
What do you think?
As an entrepreneur I’ve got my business plan and idea, now what do I need to do?

16. Resources that are used in the final product- raw material
Gift of nature OR
Resources that are used in the final product- raw material
Land
What is the land in my Thanksgiving scenario?
Turkey
Pumpkin
Potatoes (shift resources to make both baked and mashed- less of each)
Squash
Corn
Eggs
Now that I have my business plan, willing to take a risk (entrepreneur) and I have bought my raw material or inputs (land), what do I do next?
Start to manufacture my product.
With what? I don’t have any equipment.

17. Capital or Capital Good
Tools, equipment, machinery, and buildings/factories used in producing the product
Anything you use in the manufacturing of the final product
What capital or capital goods do I have in my Thanksgiving scenario?
Oven
Spoons
Pans
Refrigerator
Now that I have my business plan, willing to take a risk (entrepreneur),I have bought my inputs (land) and I have the tools and equipment to produce, (capital) what do I do next?

18. The people that work or produce for you, the entrepreneur
Labor
What labor do I have in my Thanksgiving scenario?
Jeremy
Devon

19. What We Know We Know…I think
Fundamental Economic Problem
Society’s limited resources
Scarcity
Making Choices
Individual’s unlimited wants
What to produce?
How to produce?
For whom to produce?
The person that takes the risk for the chance of making a profit
The person who answers the three fundamental questions for her/himself
Directs the other factors of production
Start producing!
Raw materials and inputs/ gifts of nature
Is which consists of which makes us how do we chose? Now what? What do we need to produce?
Four Factors of Production
Entrepreneur
Land
Capital/capital goods
Labor
Machinery and utensils to create the product
The workers with all of their efforts and skills

20. Practice Time

21. Economics and Economist
“How do economists do that?” you ask. The process is very “D A E P” Describe Analyze Explain Predict
Economics and Economist
Economics is the social science that looks at how individuals, businesses, societies and government use their limited resources to satisfy their unlimited wants
Economists are the social scientists who study and look at how individuals, businesses, societies and government use their limited resources to satisfy their unlimited wants

22. Scope of Economics 1. Describe What do you observe?
Central/south America
Tourist
Women sell goods
Small stands
Produce and flowers
What do you observe?
Fact finding, investigate, survey….
Gather as much raw data as you can

23. Scope of Economics 2. Analyze
Data showed 99% of the products that were for sale were produced by small family farms or cottage industries
Cottage industry is the production, for sale, of goods at home
There was a 5% jump in tourism since last year
Take all of the notes, surveys, data, raw data…. organize them and see what the numbers tell you.

24. Scope of Economics Take what you have learned and tell other people.
3. Explain
Take what you have learned and tell other people.
Publish an article in a journal
Write a book
Lecture
Go on TV, You Tube…
Use social media to get my explanation across

25. Scope of Economics
4. Predict
Once you have your analysis done and come up with the explanation, you can use that information to predict what the future will hold.
Since 99% of economic activity comes from cottage businesses or small family farms, the introduction of corporate farming will be disastrous for the people in this region because they will be wiped out.
Because of the additional money spent on tourism advertisement, tourism was up 5% from last year. I recommend that you increase that expenditure and hit a larger geographical area to increase the amount of tourism in this area.

26. Practice Time

27. What We Know We Know…I think
Fundamental Economic Problem
Society’s limited resources
Scarcity
Making Choices
Individual’s unlimited wants
The person that takes the risk for the chance of making a profit
The person who answers the three fundamental questions for her/himself
Directs the other factors of production
Scope of Economics
What to produce?
How to produce?
For whom to produce?
Describe
Analyze
Explain
Predict
Start producing!
Raw materials and inputs/ gifts of nature
Is which consists of which makes us how do we chose? Now what? What do we need to produce?
Four Factors of Production
Entrepreneur
Land
Capital/capital goods
Labor
Machinery and utensils to create the product
The workers with all of their efforts and skills