Chapter 2 Economic Resources and Systems Explain how

Chapter 2: Economic Resources and Systems • Explain how scarcity requires individuals and nations to make decisions about resources • Describe the four factors of production • Describe three basic economic questions each country must answer to make decisions about using its resources • Contrast the way a market economy and a command economy answer the three economic questions

Key vocabulary • Scarcity • Factors of Production • Natural resources • Labor resources • Capital resources • Entrepreneurial resource • Entrepreneurship • Entrepreneur • economics • Economic systems • Market economy • Price • Supply • Demand • Equilibrium price • Command economy • Mixed economy

Economic Decision making • Main factor governing production is scarcity • Find 5 instances of abundant resources in the world? • Find 5 instances of abundance of scarce resources? • Consumers are considered to have unlimited wants mixed with a limited supply • What are some decisions that you personally made that were governed by the concept of scarcity?

Factors of Production • Natural resources • Labor resources • Capital resources • Entrepreneurial resources • What are the factors of production that go into cheese?

Factors of Production • What are some natural resources that are found in the US? • What type of labor is found in the US? • How are capital resources different from capital? • List 5 successful Entrepreneurs from other countries and what they did.

Economic Systems • Scarcity of economic resources forces every country to develop an economic system that determines how resources will be used. Each system has advantages and disadvantages. • Economics studies how individuals and groups of individuals strive to satisfy their needs and wants by making choices. • Who, what, when, where, why, and how

Finding Natural Resources • List 3 companies that primarily specialize in natural resource extraction • What natural resources do they extract? • Write a 1 page article about one of the companies and their products/ services • Try include the share price and ticker symbol.

Types of Economies Market Command • Supply and demand • Range of prices • Equilibrium price • Shortage • Surplus • Competition • Central authority makes key economic decisions • Government dictates supply and price • No competition • Low innovation • Low monetary motivation

Types of economies • Mixed economies • Combination of a market and command economy • Governments can pick and choose what features of each theory they will provide

Online assignment • Go to CIA factbook • Download- Comparative systems worksheet • Fill out the worksheet comparing the three countries • Answer the following questions using examples from your research. • How can the presence or absence of natural resources and arable land affect a nation's economy, regardless of the type of economic system? • How can life expectancy and literacy rates affect the quality of labor in the economy? • How can fertility rates affect the use of scarce resources?

Online assignment • How can GDP per capita and poverty rates indicate standards of living in each system? • How can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization? • How can electricity, communication, and transportation facilities indicate the potential for industrial growth? • Considering the lack of natural resources, the labor problems, and the lack of capital and little industrialization of developing countries, how can developing countries develop? (Hint: Look at Economy - Overview for Chad).

Presentation • You are starting your own country. Your limitations are 1 coastline available to an ocean and 5 natural resources of your choosing. • You can tailor the rest of your country to suit your needs as a government choosing an economic system. • • • What system would you install? Why? What would you produce? What would you keep under government control? What would you allow to be a private enterprise? 1 Fun fact about your country

Chapter 2 Quiz • Concentration game