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Economics

Wrong!

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8EconomicsThe study of the choices people make in an effort to satisfy their needs and wants

GoodsPhysical objects / tangibleYou can touch it.

ServicesActions or activities that one person performs for another / intangibleYou cannot touch it.

GoodServiceGood or Service?Mechanic giving car a tune-up

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GoodServiceGood or Service?Watch

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Right

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32Bell RingerPlease write in complete sentences!

What are goods and services?

How do they differ from each other?January 5, 2012ScarcityLimited quantities of resources to meet unlimited wantsYou can run out and when that is gonethat is it no more

ShortageA situation in which a good or service is unavailableYou can run out but more is being produced and will be here soonWal-Mart is having a sale on their jewelry. All of their diamond rings, necklaces, and earrings are on sale.

You go to Wal-Mart and there is no diamond jewelry of any kind in the glass cases. You ask the attendant and they say There are no more diamonds in the world to create more jewelry.This is consideredScarcity or Shortage?Scarcity

Wal-Mart is having a sale on Charmin toilet paper and you are getting very low at home.

You go to Wal-Mart and there is no toilet paper on the shelves You ask the attendant and they say, The truck got stuck in a snow storm in Wisconsin. It will be in on Thursday.This is considered

Scarcity or Shortage?ShortageLandAll natural resources used to produce goods and services

LaborThe effort that people devote to a task and get paid forCan be physical or mental labor

CapitalPhysicalMan-made objects used to create other goods and services

HumanKnowledge and skills a worker gains through education & experience

Music video discussing the factors of production43Lets Try ItTell me what kind of factors of production you see in the following pictures

Iron Ore

CharcoalActivityCreate a 4 x 4Draw each type of Factor of Production in each squareLand

Labor

Physical Capital

Human Capital

ExampleLand

Labor

Physical Capital

Human Capital

EntrepreneursLearning ObjectivesAnalyze how factors of production are used today, categorize and defending your choices

Explain the role of an entrepreneur in the process of producing goods

Manifest a decision that uses different types of decision-making processes

EntrepreneurSomeone that combines land, labor, and capital to create and market new goods and services

Risk-taker, ambitious, & innovative leader

ExamplesBill Gates

Sam Walton

Steven Spielberg

Donald Trump

Sean Combs

Tyler PerryBell RingerWhich of the following situations is an example of scarcity, rather than shortage? A popular toy is sold out during the busy holiday season.You have spent your last penny and payday is a week away.A person wants an endless supply of everything but cannot have it.Gasoline was rationed in America during World War II.Bell RingerEarning a lot of money as a computer programmerBecoming a highly paid dancerRunning a service that hires people to install sprinkler systems in lawnsInventing and selling the rights to manufacture a computer gameWhich of the followingmakes someone an entrepreneur?

John D. RockefellerAndrew Carnegie

What was oil primarily used for before the invention of automobiles?What industry did Andrew Carnegie work to help build?What were two things that steel was used to help build?How would the expansion of railroads affect the steel industry?

Case StudyRead Pg 97

Answer Questions 1 & 2How does this all fit together?

Activity: Start to FinishPick a good

Brainstorm and categorize what factors of production were used in the process of creating it from start to finishActivity: Start to FinishChoose one that shows, tells or describes the process of creating the good

Draw a comic (at least 3 scenes)

Write a poem

Create a rap

Write a 1 page paperExample: French Fries*Land: farm landpotatoessun & rainland (factory is on)*Labor:farmer grew & harvested potatoestruck drivers (from farm to factory)workers in factory*Human:farmers knowledge to grow potatoesfarmers knowledge of machinerydrivers knowledge of roads & truckworkers knowledge of machinery*Physical:tools used to harvest cropstruckfactorycleaning, dicing, packaging machineryExit StoneEarning a lot of money as a computer programmerBecoming a highly paid dancerRunning a service that hires people to install sprinkler systems in lawnsInventing and selling the rights to manufacture a computer gameWhich of the followingmakes someone an entrepreneur?ChoicesBell Ringer1. Write down the list of candy bars shown.

2. Decide what your two favorite candy bars are out of what is listed write them down.

3. Write down what your favorite candy bar is out of this list.

ChoicesTrade-offsAll the alternatives that are sacrificed or given up when a decision is made

Opportunity CostThe most desirable alternative given up when a decision is madeLets Take a LookChoicesOpportunity CostOpportunity SetOpportunity BenefitExample:

List of Candy:ReesesSnickersHersheysBaby RuthAlmond Joy

Top 2 Choices:ReesesBaby Ruth

2nd Choice:Reeses

1st Choice:Baby RuthCountrys ChoicesGuns or ButterTrade-offs that nations face when choosing whether to produce more or less military or consumer goods.

Do the Benefits outweigh the cost?Scales of EconomicsExpected marginal benefitsExpected marginal costsChoices are primarily marginal not all or nothing.Economic Way of Thinking79Your Decisions??When you make decisionsIs it Yes or No?Is it What are the pros & cons?

Weighing Your OptionsThinking at the MarginDeciding whether to do or use one additional unit of some resourceExit SlipHow does opportunity cost affect you in your life? Give examples.

Write your answer in paragraph form.