Economic Resources and Systems Chapter 2

Do Now In your notebooks: What is a resource? What resources do you use on a daily basis? What do you use those resources for?

Factors of production Factors of production: all of the components necessary to produce society’s goods and services Example: wheat growing in ground tractor that harvests wheat labor that turns wheat into flour ideas for how to create final product most efficiently

Types of Economic Resources Natural resources Human resources Capital resources Entrepreneurial resources

Natural resources Raw materials found in nature Examples: Trees used to make paper Fish harvested for food Economy of many countries is based on natural resources Saudi Arabia depends on oil production Latin American countries rely on coffee crops

Types of natural resources Renewable: can be reproduced Examples: cattle, plants Nonrenewable: limited resources Examples: coal, iron, oil

Group Activity Draw examples of both renewable and non-renewable resources with the materials in the front of the room Underneath each drawing, indicate whether that resource is limited or unlimited Also indicate ways society can attempt to conserve the limited resources through other alternatives Be prepared to discuss as a class

Human resources Knowledge, efforts, and skills people bring to their work Examples: Teachers, coal miners, bank managers, farm workers Labor can be skilled or unskilled Physical or intellectual Labor unions: negotiate with management for better pay, hours, and working conditions in process known as collective bargaining

Capital resources Things used to produce goods and services Examples: Buildings, materials, and equipment Include delivery trucks, supermarkets, cash registers, and medical supplies Not the same as money Accountant’s computer is a capital resource Headquarters of Johnson & Johnson is a capital resource

Entrepreneurial resources Entrepreneurs who recognize need for new goods and services Improve ways to use resources or create and produce new ones Example: William Hewlett and David Packard created scientific calculator New resources must be developed in order to deal with scarcity I'm not making this up

Scarcity Scarcity: shortage of resources Basic economic problem for society is how to manage resources Example: society may not have enough oil, doctors, water or technology

Decisions about Production Three main questions to be asked: What should be produced? Resources used for one purposed can’t be used for something else How should it be produced? What methods will be used, how many will work to produce it, and what will be the quality of items? Who should share in what is produced? Who gets the limited number of goods that are produced? How will goods/services be distributed? Who will have the resources to buy this?

Robbinsville Apprentice In you notebooks: Use each of the three questions posed on the previous slide concerning decisions about production to decide and explain a need in Robbinsville Project Introduction

Think, Ink, Pair, Share Virtual Enterprise has been buying bagels and sandwiches for teachers and students as a fund-raiser for their class What are four factors of production that are involved in bringing students and teachers their orders? Be sure to touch on each of the four economic resources

Identifying Economic Resources Think about businesses that you are familiar with Use those businesses to complete the following worksheet Finish for homework

Bring it all Together Name resources utilized in this room Name resources utilized on the High School Campus