Snapshot 10 minutes Identify natural human and capital

Snapshot: 10 minutes Identify natural, human, and capital resources in these images:

Introduction to Economics CE. 11 a

Human Needs and Wants

Scarcity Organizer Unlimited Needs and Wants

What are Goods and Services Goods- physical objects that person can buy Services- actions or activities one performs for another

Limited Resources 3 Factors of Production o Natural Resources o Capital Resources o Human Resources

Resources are factors of production that are used in the production of goods and services. Types of resources: 1. Natural: Direct from nature Ex: Plants, Animals, Minerals 2. Human: Knowledge or labor need to produce Ex: Worker, Certificate, Degree 3. Capital: Money or materials need to buy and make the product Ex: Cash, Credit, Tools, Factories 4. Entrepreneurship: Desire for ownership of what is produced Ex: Child creating a Lemonade stand or Grass mowing business

Now list examples of natural, human, and capital resources that would be used in building a home.

Scarcity Organizer Limited Resources Unlimited Needs and Wants

What is economics? Scarcity -the inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.

Scarcity Organizer Limited Resources Unlimited Needs and Wants Scarcity

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Scarcity Organizer Limited Resources Unlimited Needs and Wants Scarcity Choices

Choices Selecting an item or action from a set of possible alternatives. Individuals must choose / make decisions about desired goods and services because these goods and services are limited.

Question Think of a time when you had to make a choice -What did you consider before making that decision? -Provide examples

Three Questions of Economics 1. What goods and services are produced in our economy? 2. How good and services are produced in our economy. 3. For Whom good and services are produced in our economy.

Scarcity Organizer Limited Resources Unlimited Needs and Wants Scarcity Choices What to produce How to produce For whom to produce

What is economics? q. People make choices about how to use limited resources, decide the ownership of resources, and structure markets for the distribution of goods and services.

Opportunity Cost What is given up when a choice is made the highest valued alternative forgone. Individuals must consider the value of what is given up when making a choice. We must make a trade-off! What is your opportunity cost of coming to school?

Price q The amount of money exchanged for a good or service. q Interaction of supply and demand determines price. q Price determines who acquires goods and services.

Incentives Motivates individuals to perform an action (buy, sell, behave)

What Am I? A physical objects that a person can buy

I am a… Good- a physical objects that person can buy

WHAT AM I? A decision between a set of possible alternatives. Individuals must choose / make decisions about desired goods and services because these goods and services are limited.

Incentives are things that incite or motivate. Incentives are used to change economic behavior. Supply and Demand interact to determine price. Demand is the amount of a good or service that consumers are willing and able to buy at a certain price. Supply is the amount of a good or service that producers are willing and able to sell at a certain price. Production is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. Resources available and consumer preferences determine what is produced.

I am… Choice A decision between a set of possible alternatives. Individuals must choose / make decisions about desired goods and services because these goods and services are limited.

I am… Choice A decision between a set of possible alternatives. Individuals must choose / make decisions about desired goods and services because these goods and services are limited.

WHAT AM I? … The cost for the good or service

I am… Price is the cost for the good or service

WHAT AM I? You can not satisfy all wants at the same time because all resources and goods are limited.

I am… Scarcity is the inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.

Incentives are things that incite or motivate. Incentives are used to change economic behavior. Supply and Demand interact to determine price. Demand is the amount of a good or service that consumers are willing and able to buy at a certain price. Supply is the amount of a good or service that producers are willing and able to sell at a certain price. Production is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. Resources available and consumer preferences determine what is produced.