Agenda- 5/13 Test/stopwatches SAFE Permission slips, divide days Introduce “Shark Tank” Project Day 1- Basic Concepts HW: -Journals due Monday -Textbooks Wednesday -Community Service Friday, May 22nd -Shark Tank Presentations Tuesday, May 26th

Fundamental Economic Problem: Societies do not have enough resources to satisfy everyone’s WANTS & NEEDS This concept is known as SCARCITY

Scarcity A lack of resources vs. unlimited wants and/or desires (read) The desire to purchase the Corvette may be strong, but the ability and willingness may not be there due to a scarcity of…

Need vs. Want NEEDS: Food Water Clothing Shelter (“designer” brands are not NEEDS ; ) WANTS: TV Phone Car Vacation Clothes (designer) I-Pod * Anything not required for “survival”

The BIG 3 (The three basic Economics questions that must be asked) WHAT to produce? (w/ the given resources) HOW to produce? (w/ currently available production methods) FOR WHOM to produce? (Who is the commodity for? Can everyone afford it? Is it available to all?)

The Factors of Production There are 4 factors of production that must be present to produce goods & services (“goods” – tangible / touchable product) (“service” – intangible / not touchable service that is performed) Examples???

Production is creating goods and services--the result of land, labor capital, and entrepreneurship! Resources

1) LAND i.e. Natural Resources Water Air Minerals Livestock Climate “gifts of nature” Is this Factor limited or unlimited? Why?

2. Labor People w/ all of their: Efforts Abilities Skills What are YOU bringing to the table???

3. Capital (a.k.a. Capital Goods) Tools, equipment, machinery used to produce goods & services (G & S) Paperclip to and Aircraft Carrier Size doesn’t matter, only that it is some type of equipment used by the LABOR to produce a Good or Service

4. Entrepreneurs The people & innovators willing to “risk it all” to start a business, enter the market, and try to generate profits. Without Entrepreneurs, there would never be new business or products brought to the markets Who are the Entrepreneurs of your generation? – BIO

Project- Day 1 Form your group Brainstorm about your product and company Start working on Part I of the business plan