What is the American Dream? The term was first used by James Truslow Adams in his book the Epic of America which was written in 1931. He states: "The American Dream is "that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. It is a difficult dream for the European upper classes to interpret adequately, and too many of us ourselves have grown weary and mistrustful of it. It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position." (p.214-215)

Economics Marketing Co-Op

Economics Economy: the organized way a nation provides for the needs and wants of it’s people Economics: the management of the production, distribution and consumption of goods and services (meeting unlimited wants with limited resources

Economic Activities Production: Make It! Consumption: Use It! Exchange: Trade It! Distribution: Give It Out!

Economic Resources Human Resources Capital Resources Natural Resources

Human Resources People Only some of the world’s people are willing and able to work There may be a shortage of workers for a certain job or profession People lack training or skills needed (computers, police force) People are not interested in filling certain jobs (fast food, janitorial work)

Capital Goods Materials, such as machinery, used to produce a finished product Reflects the state of technology that exists in society Examples: Machinery, buildings, transportation, furniture, computer equipment (technology), etc

Human Natural Capital Economic Resources Why is resource limited? worksheet after discussing why things are limited and what can be done about them Human: Examples: Salespeople, agents, ushers, janitors, players Limited: Unwilling or unable to work, shortages in certain jobs (lack of training or skills, lack of interest, changing demographics), unavailable Responses to limited: offer higher wages, offer training or retraining, increase promotions, find new sources, increase automation, offer more benefits, offer flex-time, etc. Natural: Examples: trees, oils,water, etc. Limited: Boundaries, difficult and costly to obtain, lack of technology, supply problems, weather conditions Responses to limited: find another source, find alternative source, conserve resource, pay higher price Capital: Examples: computers, ice machines, cash registers, seats Limited: state of technology, poor quality, break down Responses to limited: maintain them, change inventory procedures, find alternative goods, modify current technology Must be willing and able, lack of training Earth is finite, pollution, wrong season, drought Break (need repair), don’t last, poor quality

Capital Goods Affect on Business Companies try to maintain the capital goods they already have to minimize cost Companies look for alternative capital goods to increase profit and get an edge of competitors They modify current technology to become more efficient

What countries ask themselves when considering economic decisions 3 Economic Questions What countries ask themselves when considering economic decisions What product or services to produce How to produce those products and services For whom to produce the products and services

Economic Goods and Society Economic Good: Tangible Item Economic Service: Intangible

something you would like to have something you have to have Needs v. Wants Need Want something you would like to have something you have to have

Why are wants always unlimited? Economic Wants WANTS Non-Economic Economic Why are wants always unlimited?

Scarcity The difference between what consumers want and need and what the available resources are Unlimited Wants Limited Resources - = SCARCITY

Economic Choices Having to make a choice between two or more things Trade Off Having to make a choice between two or more things Envelope A Envelope B or Opportunity Costs Everything you gave up by making that choice