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"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?

EconomicsMarketing Co-Op

Economics DefinedEconomy: 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)

Economic Activities

1. Production: Make It!

2. Consumption: Use It!

3. Exchange: Trade It!

4. Distribution: Give It Out!

Economic Resources

Human Resources

Natural Resources Capital Goods

Human ResourcesPeopleOnly 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)

Natural Resources

NatureResources 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.

Natural resources become economic resources when used in production of goods and services

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.

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

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

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)

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

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

Economic Goods and Services

Economic Good: Tangible Item

Economic Service: Intangible•

Needs vs. Wants

NEEDS WANTS

something you have to have

something you would like to have

VS.

Economic Wants

WANTS

Non-Economic

Economic

Why are wants always unlimited?

Scarcity

The difference between what consumers want and need and what the available resources are

Unlimited Wants -

Limited Resources = SCARCITY

Economic Choices

Trade Off

Opportunity Costs

Envelope A Envelope Bor

Everything you gave up by making that choice

Having to make a choice between two or more things