2. Production
Managing resources
Physical production
Distribution

3. Resources Natural Human Capital Entrepreneurial
Renewable vs. nonrenewable
Human
Different types:
skilled vs. unskilled
physical vs. intellectual
Capital
Not money usually an asset
Entrepreneurial
Revolutionary new concepts on old ideas

4. Group work Look at a product (good)
Determine all the factors that go into production
Determine how that product goes from the ground to the shelf

5. Determining Production
Resource location
Uses for each resource
Limits on resources
How to Produce
Resources within a country or business
Who gets the end product
Limiting factors
Determining worth

6. 3 Types of economy Market Command Mixed Supply vs. Demand Communism

7. Market Pure economics Price influencing production Consumer demands
Production supply
Consumer have choice on products
Producers have choice on products
No Government intervention

8. Advantage vs. Disadvantage
Pro’s
Con’s

9. Motivation Profit Competition Market share Freedom of choice
Efficiency
Monopoly
Skill demand
Need to fill supply
No need for excess
Pro’s
Con’s

10. Commanding Determined by a central authority Communism Socialism
State makes economic decisions
Manages allocation of resources
Socialism
State manages major resources
Individuals can still own business

11. Advantage vs Disadvantage
Advantages
Disadvantages

12. Decision making Equal standard of living State meets all basic needs
Public employees
Lack of freedom
Luxuries not available
Price fixing
Wages fixed
Pro’s
Con’s

13. Mixing it up Trying to create the best mix
Decrease gap between rich and poor
Still allow wealth generation
Give a choice in production
Regulate basic needs
Provide for people who cannot provide

14. Assignment
Find an example of each economy in the world (other than the US)
Describe why each country fits the characteristic of the economy
Now what is the United States economy and why?