Presentation on theme: "Economic Resources and Systems"— Presentation transcript:
1 Economic Resources and Systems Introduction to BusinessUnit 1, Chapter 2
2 Unit 1, Chapter 2 Learning Targets Define scarcity. List four factors of production.Identify the differences between market and command economiesExplain why most countries prefer a mixed economy.
3 EconomicsUnderstanding economic resources and systems is essential to lessening economic problems.
4 What is EconomicsStudy of how society chooses to use resources to produce and distribute goods and services for people’s consumption
5 Unit 1 CH 2 Academic Vocabulary To meet needs and wants, society must produce goods and servicesScarcity – shortage of resources i.e. country may not have enough doctorsFactors of production –The means to produce goods and servicesi.e. grow wheat, build tractors to harvest wheat
6 Unit 1 CH 2 Academic Vocabulary Natural Resources -raw materialsRenewable-can be reproduced i.e. wheat and cattleNon-renewable – limited or unable to be renewed i.e. coal, iron, oilHuman ResourcesKnowledge, efforts and skills people bring to workCapital ResourcesUsed to produce goods and services i.e. building materials, equipmentEntrepreneurial ResourcesPeople who recognize need for new goods and services i.e. Apple IPAD
7 Making Decisions about Production -What should be produced?-How should it be produced?-Who should share in what is produced?
8 Text to world connection Find an article from The New York Times about a product or service.Copy and paste article into notes. Write a paragraph answering the following.Identify what types of resources are required to produce product/service. Explain availability or scarcity of product/service.
9 Types of Economic Systems Market EconomyEconomic decisions are made in the marketplace according to the laws of supply and demand i.e. USACommand EconomyPlanned or managed economy in which a central authority (usually the government makes the key economic decisions i.e. communismMixed EconomyState takes care of people’s needs while the marketplace takes care of people’s wants i.e. socialism
10 Academic VocabularyDemand- amount of quantity of goods and services that consumers are willing to buy at various pricesSupply- amount of goods or services the producers will provide at vaiours pricesEquilibrium Price – price at which the amount supplied and the amount demanded meet
11 Unit 1 CH 2 Assessment Pg 31 Complete Pg 32-33 Review what you learned #14-22Understanding business concepts #23-30Critical thinking #31-32Examining the ImagePg 32-33Linking school to workSpeculating on shortage