Main Idea: Scarcity forces us to make choices. We can’t have everything we want, so we are forced to choose what we want most.
Scarcity Economics Need Want Factors of production Land Capital Financial capital Labor Entrepreneur Production Gross Domestic Product (GDP)
What is the fundamental economic problem? List and briefly describe the basic economic questions every society must answer: A B C
List and briefly describe the 4 factors of production: A B C D
List and briefly the describe the key elements of economics: A B C D
Create a chart giving 5 examples of how scarcity has affected your life. The chart should include your examples and how you adjusted to the situation. (two columns)
Main Idea: An economic product is a good or service that is useful, relatively scarce, and exchangeable.
Economic product Good Consumer good Capital good Service Value Paradox of value Utility Wealth market
Factor market Product market Economic growth Productivity Division of labor Specialization Human capital Economic interdependence
What is the relationship between scarcity, value, utility and wealth? Draw chart: Circular Flow of Economic Activity on page 15 Explain why productivity is important to economic growth
3 columned chart to include: a. list of specialized workers and capital used in our school (3 each). b. Tell whether productivity would go up or down if these workers or capital were not available. c. Explain why or why not
Main Idea: Trade-offs are present whenever choices are made.
Trade off Opportunity cost Production possibilities Frontier Cost benefit analysis Free enterprise economy Standard of living
What is the relationship between trade offs and opportunity costs? What are the decision making strategies that economists use? Why is the study of economics important to the free enterprise system?
Make a list of at least 5 possible uses of your time that will be available to you after school today. Put a check mark by the ones you will actually do. Describe the opportunity costs of your decision will be. How will your decision affect those around you?