1. Economic Resources and Systems
Chapter 2

2. Do Now In your notebooks: What is a resource?
What resources do you use on a daily basis?
What do you use those resources for?

3. Factors of production
Factors of production: all of the components necessary to produce society’s goods and services
Example:
wheat growing in ground
tractor that harvests wheat
labor that turns wheat into flour
ideas for how to create final product most efficiently

4. Types of Economic Resources
Natural resources
Human resources
Capital resources
Entrepreneurial resources

5. Natural resources Raw materials found in nature Examples:
Trees used to make paper
Fish harvested for food
Economy of many countries is based on natural resources
Saudi Arabia depends on oil production
Latin American countries rely on coffee crops

6. Types of natural resources
Renewable: can be reproduced
Examples: cattle, plants
Nonrenewable: limited resources
Examples: coal, iron, oil

7. Group Activity
Draw examples of both renewable and non-renewable resources with the materials in the front of the room
Underneath each drawing, indicate whether that resource is limited or unlimited
Also indicate ways society can attempt to conserve the limited resources through other alternatives
Be prepared to discuss as a class

8. Human resources
Knowledge, efforts, and skills people bring to their work
Examples:
Teachers, coal miners, bank managers, farm workers
Labor can be skilled or unskilled
Physical or intellectual
Labor unions: negotiate with management for better pay, hours, and working conditions in process known as collective bargaining

9. Capital resources Things used to produce goods and services
Examples:
Buildings, materials, and equipment
Include delivery trucks, supermarkets, cash registers, and medical supplies
Not the same as money
Accountant’s computer is a capital resource
Headquarters of Johnson & Johnson is a capital resource

10. Entrepreneurial resources
Entrepreneurs who recognize need for new goods and services
Improve ways to use resources or create and produce new ones
Example:
William Hewlett and David Packard created scientific calculator
New resources must be developed in order to deal with scarcity
I'm not making this up

11. Scarcity Scarcity: shortage of resources
Basic economic problem for society is how to manage resources
Example: society may not have enough oil, doctors, water or technology

12. Decisions about Production
Three main questions to be asked:
What should be produced?
Resources used for one purposed can’t be used for something else
How should it be produced?
What methods will be used, how many will work to produce it, and what will be the quality of items?
Who should share in what is produced?
Who gets the limited number of goods that are produced?
How will goods/services be distributed?
Who will have the resources to buy this?

13. Robbinsville Apprentice
In you notebooks:
Use each of the three questions posed on the previous slide concerning decisions about production to decide and explain a need in Robbinsville
Project Introduction

14. Think, Ink, Pair, Share
Virtual Enterprise has been buying bagels and sandwiches for teachers and students as a fund-raiser for their class
What are four factors of production that are involved in bringing students and teachers their orders?
Be sure to touch on each of the four economic resources

15. Identifying Economic Resources
Think about businesses that you are familiar with
Use those businesses to complete the following worksheet
Finish for homework

16. Bring it all Together Name resources utilized in this room
Name resources utilized on the High School Campus