1. Starter Write the answer these questions. 1.Who fought in the American Revolution? 2.What did Thomas Paine write? 3.Why did Anti-Federalists fear a strong central government? 4.Why were the colonists mad at Parliament? 5.What condition exists with no government?

2. 7.05 Explain the impact of investment on human, capital, productive, and natural resources.

3. Investment A firm or worker can increase productivity through investment Investment- using resources that could bring immediate benefits for the purpose of gaining at a later time Example- saving money in an interest bearing account

4. Productivity growth comes from capital investment- investment in capital goods and human capital Capital goods- goods used to make other goods- bolts or screws Consumer goods- goods purchased for use by individuals. Recycling Education and training

5. Consumer Goods vs. Capital Goods Create two lists. Place the following products in the correct list for which they which most likely be. Forklift, hamburger, candy bar, television, pencil, dump truck, car, tennis ball, gun, lumber, gold, gasoline, airplane, birthday cake, jack hammer, sheetrock, Christmas tree, mattress, helicopter, rake, Bible, bleachers.

6. How much to invest? Companies need to decide how much money they plan to invest and how much they will spend in their business. They can take into account – Producer Price Index (PPI) – Output vs input – Law of diminishing returns

7. Cost of Investment vs. Estimated Future Benefits Producer Price Index (PPI)- measures the average changes in prices for different goods. Input versus output Law of Diminishing Returns – Investing too much can hurt a business – If a restaurant adds one chef, it make cook more food. If it adds ten chefs, less will get done because of a lack of space, arguing, etc.

8. Today’s Assignment 1.What is the difference between a capital good and a consumer good? 2.As the owner of a McDonalds restaurant, what would be your area of capital investment? 3.What would be the trade-off for a company installing new equipment in their buildings? 4.Explain law of diminishing return in your own words. Do not use mine.