1. Warm-Up Ch.13 Section 1 What is it that you want right now? It can be any material possession in the world that is sold legally. Describe the process in which this material good is made from your knowledge and how it gets to the store? Now describe how your going to provide the resources to purchase or use this material good, if your using money or credit card how did you get the money, if you say parents, how did they get money? Describe the process of wanting to consumption as best you can.

2. Chapter 13 Section 1 Why Societies Have Economies

3. People’s Many Wants Everybody has wants. Everybody has wants. The most basic wants are food, clothing and shelter. (The necessities to survival) The most basic wants are food, clothing and shelter. (The necessities to survival) People have an endless number of wants. People have an endless number of wants. (Health Care, Entertainment, Money) What your class wants? What your class wants? -New Jordans -$$$$$$$$$$$-Clothes-Music -Driver’s License -Car How long do this material things satisfy you?

4. Using Resources In order to satisfy the wants of the world’s population, companies must use resources to create this material goods. In order to satisfy the wants of the world’s population, companies must use resources to create this material goods. Factors of Production- the resources people have for producing goods and services to satisfy their wants. Factors of Production- the resources people have for producing goods and services to satisfy their wants. The three (3) basic factors of production are labor, land and capital. Labor is time and energy used to make the product. Land is the “natural” resources needed to make the product. Capital is anything produced in a economy that is used to produce other services or goods. (Buildings, tools, machines)

5. Production to Consumption Production is when the resources of land, labor and capital are combined to produce what the people want. Production is when the resources of land, labor and capital are combined to produce what the people want. These resources (land, labor and capital) are called factors of production. These resources (land, labor and capital) are called factors of production. Production Distribution Consumption Production Distribution Consumption Distribution is the process by which goods and services are available to the people who want them. Distribution is the process by which goods and services are available to the people who want them. Consumption is the act of buying or using goods or services. Consumption is the act of buying or using goods or services.

6. Making Choices  There are never enough resources to produce all the goods and services people want. Therefore people must decide what they want, these are called economic choices.  What also influences economic choices are costs. The major cost of any decision is giving up the benefits you would have received from the alternative.  Opportunity Cost is the highest valued benefit given up when the choice is made.

7. Scarcity Scarcity is when resources are always limited compared with the number and variety of wants people have. Scarcity is when resources are always limited compared with the number and variety of wants people have. Scarcity is a problem in both rich and poor societies. Scarcity is a problem in both rich and poor societies. Scarcity is based on the relationship between wants and the resources available to satisfy them. Scarcity is based on the relationship between wants and the resources available to satisfy them. Decisions about what to produce and consume are made by the government, individuals and businesses everyday. Decisions about what to produce and consume are made by the government, individuals and businesses everyday.