2 EconomicsThe study of why people make one choice rather than another when buying and selling, spending and savingIt explains how businesses are formed to satisfy different wants and needsDecisions you make every time you walk into a store are part of economics
3 What are goods and services? Goods- Things that can be seen or touched(products)Services- Useful work (selling you the product)They each have value, because they satisfy peoples needs and wants
4 Producers and Consumers The people that make or provide goods and services are producersThose that buy goods or pay for a service are considered consumers
5 Economic resources 3 kinds 1. Natural resources- provided by the world around us2. Human resources-the people that provide goods and services (producers)How much a nation produces depends largely on the abilities of its people3. Capital resources- Machines, tools and buildings used in the productions of goods and services
6 EntrepreneurshipThe individual who brings together all of the economic resources to start a business is called an entrepreneurThe entrepreneur invests time and money in a business in the hope of making money
7 Assignment 1. What are the three types of economic resources? 2. Provide an example of each in a business you have visited recently?3. Define entrepreneur.4. How might and Entrepreneur bring together economic resources to start a business?5. Differentiate between producers and consumers?