1. Agenda
Grab a textbook from the back corner of the room!

2. WARM UP
In the US, there are about 37 million youths between the ages of People from this age are the ones most likely to work as babysitters. Yet, parents in many neighborhoods today have a hard time finding babysitters. When they are lucky enough to find one, the sitter often charges high prices - $10 to $20 an hour! And the minimum wage is $9.30!
Question: Why are teenagers today so greedy!? Who do they think they are!? Explain the above using vocabulary from yesterday’s class.

3. ECONOMICS: THE THREE BASIC QUESTIONS
Because of scarcity (unlimited wants + limited resources), societies need to address the following:

4. THREE QUESTIONS OF ECONOMICS
WHAT to produce
What goods and services does the society need?
HOW to produce
By what means does the government produce those goods and services?
FOR WHOM to produce
Who will receive the things being produced?
*hint: think about wartime

5. ECONOMIC SYSTEMS
TRADITIONAL
COMMAND
MARKET
MIXED

6. NEEDS VS. WANTS
Needs: things required in order to live (food, water, clean air, shelter, clothing)
Wants: things that add pleasure or comfort to your life (movies, sports cars, luxury homes, toilet paper)

7. WARM UP
Do you believe your needs are more similar to or different from those that your parents had when they were your age?
With your group, prepare a list of 5 needs that you agree would be similar to those of your parents when they were young and a list of 5 needs that you agree would likely be different.
JUSTIFY why those listed are needs and not wants

8. In the USA…
Do service businesses satisfy more of your needs or your wants?
Generally service businesses address more wants than needs, but there are some service business that satisfy needs.

9. How do you satisfy your needs and wants?

10. SATISFYING WANTS AND NEEDS
By purchasing goods and services
GOODS
SERVICES
Products that you can see and touch
Activites that are consumed at the same time they are produced
They are intangible, which means they have no physical characteristics
Pens, pencils, cell phones, shoes
Haircut, Lyft ride, car wash
The United States economy is the largest producer of goods and services in the world.

11. SATISFYING WANTS AND NEEDS
Goods and services are produced through factors of production
LABOR (HUMAN RESOURCES)
LAND (NATURAL RESOURCES)
FACTORS OF PRODUCTION
CAPITAL
ENTREPRENEURIAL

12. FACTORS OF PRODUCTION LAND (NATURAL)
-- raw materials supplied by nature
-- water, trees, oil, minerals
-- renewable v. nonrenewable
LABOR (HUMAN)
-- people who produce goods and services – they contribute physical and mental energy
-- factory workers, farmers, sales people, truck drivers
CAPITAL
-- tools, equipment, buildings, money that are used to produce goods and services
-- hammers, buildings, cash, bulldozers, ovens
ENTREPRENEURIAL
-- those who take a risk by combining the above to develop a new product or business
-- Bill Gates, Mark Zuckerberg, Elon Musk

13. FACTORS OF PRODUCTION: GAME TIME
Or, “productive factors”
They are the resources required to produce things that we want to have

14. Productive Resources Land Labor Capital Entrepreneurs
Natural resources not created by people
People with their efforts, abilities, and skills
The tools, equipment, and machinery used in the production of goods and services
Risk takers who do something new with existing resources
*driving part of an economy

15. EXIT TICKET
How has the demand for HUMAN resources changed in business over the past decade?
Need for more education and higher skills
Businesses using more workers in other countries to produce goods and services.