1. Civics Core 100, Goal 7 Goal 7: The learner will investigate how and why individuals and groups make economic choices.

3. CELL: CELL: Capital: manufactured goods used to make other goods and services- sometimes in economics it refers to $ Capital: manufactured goods used to make other goods and services- sometimes in economics it refers to $ Machines, buildings, tools Machines, buildings, tools Entrepreneurship: individual who starts a new business, introduces a new product, and improves processes Entrepreneurship: individual who starts a new business, introduces a new product, and improves processes Land: AKA Natural Resources: actual service land and water as well as fish, animals, forests, and mineral deposits Land: AKA Natural Resources: actual service land and water as well as fish, animals, forests, and mineral deposits Labor: human resources; anyone who works to produce goods and services Labor: human resources; anyone who works to produce goods and services

5. Needs: required for survival Needs: required for survival Food, clothing, shelter Food, clothing, shelter

6. Wants: things we would like to have Wants: things we would like to have Entertainment, vacations, items that make life comfortable and enjoyable Entertainment, vacations, items that make life comfortable and enjoyable

8. Occurs whenever we do not have enough resources to produce all of the things we would like to have (wants) Occurs whenever we do not have enough resources to produce all of the things we would like to have (wants) No country has all of the resources it needs, therefore, resources are limited No country has all of the resources it needs, therefore, resources are limited Wants = unlimited, Resources = limited Wants = unlimited, Resources = limited Because of this, all societies must answer 3 questions: THE THREE BASIC ECONOMIC QUESTIONS Because of this, all societies must answer 3 questions: THE THREE BASIC ECONOMIC QUESTIONS WHAT to produce? WHAT to produce? HOW to produce? HOW to produce? FOR WHOM to produce? FOR WHOM to produce?

10. Alternative you face if you decide to do one thing rather than another. Alternative you face if you decide to do one thing rather than another. Not only about decisions involving money Not only about decisions involving money Example: choosing a Pepsi over a Coke would be a trade off Example: choosing a Pepsi over a Coke would be a trade off

12. Cost of the next best use of your time or money when you choose to do one thing rather than another Cost of the next best use of your time or money when you choose to do one thing rather than another Cost= more than just money (involves all of the possible discomforts and inconveniences linked to the choice) Cost= more than just money (involves all of the possible discomforts and inconveniences linked to the choice) When you make a trade-off, you lose something When you make a trade-off, you lose something Example: Choosing to go to the movies instead of the football game. The opportunity cost could be the excitement of the game, the interaction with friends, and maybe money. Example: Choosing to go to the movies instead of the football game. The opportunity cost could be the excitement of the game, the interaction with friends, and maybe money.

14. Takes place when people, businesses, regions, or even countries concentrate on goods or services that they can produce better than anyone else Takes place when people, businesses, regions, or even countries concentrate on goods or services that they can produce better than anyone else Nearly everyone demands on others to produce things to consume Nearly everyone demands on others to produce things to consume

16. PACED PACED Identify the Problem Identify the Problem List Alternatives List Alternatives State your Criteria State your Criteria Evaluate Alternatives Evaluate Alternatives Decision! Decision!

17. Comparing the marginal benefit against the marginal costs Comparing the marginal benefit against the marginal costs If the costs outweigh the benefits, we should reject the chosen option If the costs outweigh the benefits, we should reject the chosen option

19. Productivity: Efficient use of resources Productivity: Efficient use of resources Measure of the amount of output produced by a given level of inputs in a specific period of time Measure of the amount of output produced by a given level of inputs in a specific period of time Productivity more output can be produced with the same amount of input in the same amount of time Productivity more output can be produced with the same amount of input in the same amount of time

20. Specialization Specialization Division of Labor- assembly lines Division of Labor- assembly lines Investment in human resources- train your employees Investment in human resources- train your employees Investment in capital resources- improve the equipment used, example: computers. Investment in capital resources- improve the equipment used, example: computers.

22. The things used in making goods and providing services The things used in making goods and providing services Tools, people (human resources), wood, soil, and water (natural resources) Tools, people (human resources), wood, soil, and water (natural resources)

24. Breaking down a job into small tasks performed by different workers Breaking down a job into small tasks performed by different workers Makes use of differences in skills and abilities Makes use of differences in skills and abilities Improves productivity Improves productivity

26. French for “ let it alone ” French for “ let it alone ” Government should not interfere in the marketplace. Government should not interfere in the marketplace. Government ’ s role is confined to those actions necessary to ensure free competition Government ’ s role is confined to those actions necessary to ensure free competition