1. Why Societies Have Economies Chapter 13 Section 1 Chapter 13 Section 1

2. People’s Many Wants  What are some of our basic wants?  Many times people are not satisfied by their basic wants.  Would you say that people’s wants differ based on where they live and who they are? Why?  What are some of our basic wants?  Many times people are not satisfied by their basic wants.  Would you say that people’s wants differ based on where they live and who they are? Why?

3. People’s Many Wants  Environment is one of the most important influence on someone’s wants.  Does a person’s culture influence their wants?  Are people’s wants permanent or can they change? Do you still want the same toys as when you were seven years old?  Wants expire. For example, you many want a new pair of jeans, but those jeans will not fit you for ever, right?  Environment is one of the most important influence on someone’s wants.  Does a person’s culture influence their wants?  Are people’s wants permanent or can they change? Do you still want the same toys as when you were seven years old?  Wants expire. For example, you many want a new pair of jeans, but those jeans will not fit you for ever, right?

4. Using Resources  Factors of Production- are the resources people have for producing goods and services to satisfy their wants.  The people who study how economies work are called________.  The three basic factors of production in an economy are ______,_______,&______.  Factors of Production- are the resources people have for producing goods and services to satisfy their wants.  The people who study how economies work are called________.  The three basic factors of production in an economy are ______,_______,&______.

5. Using Resources Labor  Labor includes time and energy. Land  Land is made up of many different resources that are needed to help produce goods and services. Can you tell me some natural resources? Labor  Labor includes time and energy. Land  Land is made up of many different resources that are needed to help produce goods and services. Can you tell me some natural resources?

6. Using Resources Capital  Capital is anything produced in an economy that is used to produce other goods and services.  What are some examples of capital?  When goods such as tools and factories are used as capital, they are called ____.  What is financial capital? Capital  Capital is anything produced in an economy that is used to produce other goods and services.  What are some examples of capital?  When goods such as tools and factories are used as capital, they are called ____.  What is financial capital?

7. Production to Consumption  To produce the goods and services people want, the resources of labor, land and capital must be combined in a process called production.  What follows production? Define.  Consumption is the act of buying or using goods and services.  To produce the goods and services people want, the resources of labor, land and capital must be combined in a process called production.  What follows production? Define.  Consumption is the act of buying or using goods and services.

8. Production to Consumption Wants  Is the first step in the process or want-satisfaction chain. Production  Is the second step or link in the want-satisfaction chain. Distribution  What is the distribution step in the process? Consumption  The final step or link in the chain. This is the satisfaction part and the process starts all over again. Wants  Is the first step in the process or want-satisfaction chain. Production  Is the second step or link in the want-satisfaction chain. Distribution  What is the distribution step in the process? Consumption  The final step or link in the chain. This is the satisfaction part and the process starts all over again.

9. Making Choices  There is never enough resources to produce all the goods and services people want. Thus, people in all societies must make choices about which of their wants will be satisfied and which will not.  Making these choices is what economy is all about.  There is never enough resources to produce all the goods and services people want. Thus, people in all societies must make choices about which of their wants will be satisfied and which will not.  Making these choices is what economy is all about.

10. Making Choices Benefits  First you have to look at the benefits you will receive from each possible choice. Costs  This part involves you looking at the cost of your choices. This does not necessarily need to be financial. Opportunity Cost- the highest valued benefit given up when a choice is made. Benefits  First you have to look at the benefits you will receive from each possible choice. Costs  This part involves you looking at the cost of your choices. This does not necessarily need to be financial. Opportunity Cost- the highest valued benefit given up when a choice is made.

11. Scarcity  Scarcity- means that resources are always limited compared with the number and variety of wants people have.  Scarcity affects both the poor and the rich.  Scarcity is not based on the total amount of resources in a society, but rather on the relationship between wants and the resources available to satisfy them.  Scarcity- means that resources are always limited compared with the number and variety of wants people have.  Scarcity affects both the poor and the rich.  Scarcity is not based on the total amount of resources in a society, but rather on the relationship between wants and the resources available to satisfy them.

12. Scarcity  The text gives us an example of scarcity in Japan, can someone explain the situation?  Not only do individuals face scarcity but nations do as well.  What are some government choices that have to be made?  What common characteristic do the choices of individuals, businesses, and governments have?  The text gives us an example of scarcity in Japan, can someone explain the situation?  Not only do individuals face scarcity but nations do as well.  What are some government choices that have to be made?  What common characteristic do the choices of individuals, businesses, and governments have?