Scarcity Four Factors PP

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					    UNIT II
Economic Resources
    WARM UP

Make  a list of 5
things you really
     want!!!
   (Assignment #1)
Scarcity
The Economic
   Problem
SCARCITY


 Limited
 Resources
SCARCITY



  Unlimited
   Wants
  Economics Is…

 The   study of limited
 resources but unlimited
   wants, which forces
people to make a CHOICE!
    Opportunity Cost
What does it cost you to
“attend” this particular
“class session”?

          Think about it!
        Talk to your partner.
        Opportunity Cost
 To answer the question, you should have
  asked yourself what else you could be
  doing during this time?
 Make a list…

 Next, prioritize your other activities.
       Opportunity Cost
The  first item on your list of
 alternative activities is the
 opportunity cost of attending this
 class.
Every activity has a cost - what
 you gave up.
      Opportunity Cost
Because   resources are scarce,
 choices need to be made.
Choice results in cost.

The cost of any choice is what
 you had to give up.
This is called Opportunity Cost.
                Economics:
              TWO BRANCHES


Microeconomics               Macroeconomics

  “Small   Picture”            “Big Picture”
Study of individual          Study of the economy
   units.                     as a whole.
Looking at one thing         Concerned with the
   at a time                  TOTAL picture
Individual decision making    Societal decision making
          Micro or Macro
 Write down the subject of newspaper
  headlines you did for your current
  events and determine whether each
  is a micro or macro issue!!!
 Then, discuss with your partner – are
  they correct??
             Economics…
 Uses   resources to achieve wealth
       Types of Resources
            Goods v. Services

– Good -- An item you can see, feel, and touch
  and that requires scarce resources to produce
  and satisfies human wants
– Services -- Something that is not physical
  that requires scarce resources to produce and
  satisfies human wants
=>With your partner list 3 Goods & 3 Services…
    Four Factors of Production
   (Resources used to achieve wealth)
 Land-natural   resources
 Labor-an individual providing his/her
  services for wages
 Capital-equipment that can be used
  for production
 Entrepreneurship-someone that
  uses the first three resources to
  make a profit. Considered to be a
  “risk taker” and business leader.
       Draw a Tree Map

             Four Factors of
               Production




                                     Entrepreneurship
LAND     LABOR             CAPITAL
    Determine which of the four factors of
    production it falls under and place it in
      the correct place on your tree map:
   Computer                Radio
   Forests                 Mountains
   Cab driver              Small restaurant
   Bakery Store Owner       owner
   Petroleum               Minerals
   Automobile              Pencil
   Brain surgeon           Computer software
   Factories                developer
   Tractor                 Waitress
   Highway system          Ocean
                            Fish
Come Up With 3 Examples of Your
 Own and add it to your tree map
 Land:



 Labor:



 Capital:



 Entrepreneur:
   Tree Map Collage of the Four Factors of
                Production


 Create  a collage that illustrates the four
  factors of production.
 Draw another tree map on your
  construction paper and label each
  “branch” as one of the four factors of
  production.
 Find pictures in the magazines that fall
  under each category.
                    QUICK QUIZ:
       (Match the correct term with its definition)
                    a.) The study of how people use their
1.   Scarcity      scarce resources to satisfy their
                   unlimited wants.
2. Entrepreneur b.) All physical and mental effort
                   used to produce goods and services
3. Good
                c.) A profit seeker who develops a
4. Labor           new product and assumes the risk
                   of profit or loss
5. Economics    d.) Limited resources but unlimited
                   wants
                e.) An item you can see, feel, and
                   touch and that requires scarce
                   resources to produce and satisfies
                   human wants
Due to Scarcity, every Society Must
       Answer 3 Questions:
1.   What goods shall we produce?
2.   How shall these goods be
     produced?
3.   For whom should the goods be
     produced?

 *These are known as the 3 Economic
              Questions*
 In the U.S. private enterprise must
   answer the three Qs as follows:
1.   WHAT TO PRODUCE?
     U.S. production leans towards
     consumer goods & services
2.   HOW TO PRODUCE?
     U.S. believes in private enterprise
     (corporations and small businesses
     privately owned)
3.   FOR WHOM TO PRODUCE?
     U.S. production leans towards the
     large middle class
         Survival Activity
 Read  the Prompt
 Answer the Three Economic
  Questions using the resources
  provided on the handout with your
  partner
 Write 1 paragraph for each question
                Wrap-up
 Why does scarcity exist and what does it
  force us to do?
 List the different types of resources and
  factors of production we discussed today
  and explain what they help us do.
 List the three economic questions and
  explain why private enterprise must ask
  ourselves the three questions in the U.S.
  to make economic decisions.

				
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posted:9/7/2011
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