1. "that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement, regardless of social class or circumstances of birth” What is the American Dream?

2. Economics Marketing Co-Op

3. Economics Defined Economy: the organized way a nation provides for the needs and wants of it’s people Economics: the management of the production, distribution and consumption of goods and services (meeting unlimited wants with limited resources)

4. Economic Activities 1.Production: Make It! 2.Consumption: Use It! 3.Exchange: Trade It! 4.Distribution: Give It Out!

5. Economic Resources Human Resources Natural Resources Capital Goods

6. Human Resources People Only some of the world’s people are willing and able to work There may be a shortage of workers for a certain job or profession People lack training or skills needed (computers, police force) People are not interested in filling certain jobs (fast food, janitorial work)

7. Natural Resources Nature Resources found in nature that can be used to produce goods or services Examples: –Wildlife, plant life, bodies of water, weather conditions, minerals, natural gas, etc. economic resources Natural resources become economic resources when used in production of goods and services

8. Capital Goods Materials, such as machinery, used to produce a finished product Reflects the state of technology that exists in society Examples: –Machinery, buildings, transportation, furniture, computer equipment (technology), etc.

9. Economic Resources RESOURCES HUMAN NATURAL CAPITAL Why is resource limited? Must be willing and able, lack of training Earth is finite, pollution, wrong season, drought Break (need repair), don’t last, poor quality

10. Human Resources Affect on Business How do employers deal with a shortage of workers for a certain job or profession? Offer higher wages Offer training and retraining Increase promotions/incentives Increase technology

11. Natural Resources Affect on Business All natural resources are limited Some of the earth’s resources are difficult and costly to obtain Not all countries have the ability to tap into all of their natural resources (lack technology and equitment) When natural resources are limited, prices go up on products that require these resources (gas)

12. Capital Goods Affect on Business Companies try to maintain the capital goods they already have to minimize cost Companies look for alternative capital goods to increase profit and get an edge of competitors They modify current technology to become more efficient

13. Three Economic Questions What countries ask themselves when considering economic decisions What product or services to produce How to produce those products and services For whom to produce the products and services

14. Economic Goods and Services Tangible Item Economic Good: Tangible Item Intangible Economic Service: Intangible

15. vs. Needs vs. Wants NEEDSWANTS something you have to have something you would like to have VS.

16. Economic Wants WANTS Non-Economic Economic Why are wants always unlimited?

17. Scarcity The difference between what consumers want and need and what the available resources are Unlimited Wants - Limited Resources = SCARCITY

18. Economic Choices Trade Off Opportunity Costs Envelope A Envelope B or Everything you gave up by making that choice Having to make a choice between two or more things