1. The Factors of Production
Information & Activities
Guide to Chapter 19.1 & 19.2

2. Chapter 18 Review Quiz (Use p. 64)
____ is the study of how people satisfy unlimited wants & needs with limited resources. ____ is basic problem of economics. List the 3 basic economic questions: Rent is an example of a ___ cost. T/F Economic models are always reliable & predictable. T/F Some trade-offs have no opportunity costs. T/F All people have their basic needs met. T/F Most teenagers satisfy wants with their money.

3. What are the Factors of Production?
Necessary resources to produce goods and services.
Includes 4 categories:
Land
Labor
Capital
Management
All 4 categories are needed to produce g/s.
Review part 2 of sheet!

4. Circles of Knowledge Activity
Get into groups of 3.
You have 1 minute to list as many uses for how that resource could be used.
Can’t be illegal in NC, must be a reasonable, legitimate use!
Cannot repeat another group’s answer.
Be specific.
Take your pen with you. Move clockwise to next station.
Tally results.

5. Wrapping it Up
Label each paper with the proper factor of production category.
What role were the groups playing at each station?
Complete reflection.

6. REFLECTION: For p. 67 Write your original resource at the top of page.
In a good paragraph, explain how you would use your resource if you really had it. Explain what natural resources you would need; how many and what kinds of workers you would need; what kinds of capital would you need to get your business venture off the ground; and whether or not you would be a successful entrepreneur in the business venture.

7. Tying it all together! What is GDP? What does GDP measure? (Final g/s)
The total dollar value of all final goods produced in a country in a year.
What does GDP measure? (Final g/s)
What does it NOT measure? (Raw materials, quality)
What does GDP gauge about a nation?
Main indicator of a country’s economic growth
How does that relate to the factors of production?
The more of these a country has, the higher their GDP
Go over questions from chart.

8. Assignment To complete questions, read 19.2 .
You may work with your elbow partner.

9. Circular Flow of Economic Activity
Factors Market
Land
Labor
Cap.
Cap
Mang.
Land
Businesses
Governments
Households
Good
Serv
Good
Serv
Good
Serv
Product Market

10. 19.2 Our Market Economy What is a “market economy?”
Buyers and sellers answer the 3 basic economic questions.
Goods and services are exchanged voluntarily for fees.
Government involvement is very limited.
What makes a market economy successful?
FREEDOM
Choice

11. Productivity What does it mean to be productive?
What 3 characteristics make a business productive?
How does specialization improve productivity?
How does division of labor improve productivity?

12. Interdependence What is interdependence?
Could the US be independent from trade? Would we? Explain.
Do “Where in the World?” Activity

13. “Where in the World?”
You and a partner have 5 minutes to decide in what country the following corporations are headquartered: There are no repeats!
Nike Firestone
Nestle Michelin
Bayer Fila Shoes
Tropicana 10. Baskin-Robins
Shell Volvo
TV Guide 12. Bumblebee Tuna

14. Answers!! Check your own papers, but by all means—BE HONEST!!
US Japan
Switzerland France
Germany Italy
Canada Great Britain
The Netherlands 11. Sweden
Australia Thailand

15. Find Your Group
Group 1:
Group 2:
Group 3:
Group 4:
Group 5:
Group 6:

16. Interdependence Activity
You will be assigned to a group.
Pull out task sheet and read as a group.
Choose ONE trade representative. Only this person may leave the group. Assign other tasks to complete.
Raise you hands when all tasks are successfully completed and you are ready to be scored.
If you have questions, please raise your hand.
Remember the discussions of efficiency, quality, division of labor, and specialization.