Opening Activity #2 1.Describe what you see. Be as specific as possible. 2.Identify the what message the cartoon is demonstrating. 3.Predict what will happen if nobody gets what they want.

Scarcity and the Factors of Production

What is a need? a necessity, required for survival, or something you can’t go without – Example: air, food and water, shelter, clothing

What is a want? An item that we desire but that is not essential to survival, luxuries – Example: VW Bus, season seats, iPhone 5

Needs vs. Wants

Write-Pair-Share List the needs you have. List 5 specific wants you have.

What is the difference between a good and a service? A good is a physical object – Example: clothing, iPod A service is an action or activity that one person performs for another – Example: haircut, babysitting

Think-pair-share You want to buy a house. You hire a real estate agent to help you find a home. After showing you different homes, you finally decide on a home in Redondo Beach and buy it. Identify what the good is and what the service is.

What is “economics”? Economics is the social science that studies how individuals, businesses, and societies seek to satisfy their needs and wants by making optimal choices under conditions of scarcity

What is scarcity? Limited amount of resources to meet unlimited wants – Example: I can’t buy an endless supply of VW buses Scarcity always exists because our wants and needs are always greater than the resource supply

Ticket out the Door 1.Summarize the definition of “economics” in your own words. 2.Explain why people make choices.

Opening Activity #3 1.What was the last good or service you received for free? 2.How or why did you get this for free? 3.Think critically. Explain why this good or service was not really free?

Partner Challenge 1.List everything that went into the making of In ‘n Out fries from the time it was thought of until the time it was purchased by a consumer.

Football 1.What is a need? What are all 5 needs? 2.What is a want? Example? 3.What is a good? Example? 4.What is a service? Example? 5.What is economics the study of? 6.What is scarcity? 7.Why is Adam Smith important? 8.What types of incentives are there? 9.Tell me something about incentives. 10. Pair/Share: “There’s no such thing as a free lunch.” Agree or disagree? Why?

What are economic resources? All natural, human, and manufactured resources that goes into the production of goods and services Resources that make goods and services are called the factors of production Factors of production are – Land, labor, capital, and entrepreneurship

Land Land: the natural resources that are used to make goods and services – Example: fertile land, coal, water, forests

Labor Labor is the work people do for pay – Example: artist painting, chef, mechanic

Capital Capital is any human made resource that is used to create other goods and services – 2 types to produce goods and services 1.Physical capital 2.Human capital

Physical capital Physical capital are all human made goods that are used to produce other goods and services – Example: machines, tools, buildings

Human capital Human capital: the knowledge and skills a worker gains through education and experience – Example: vets use training from school; coaches use training

Who pulls these resources together? Entrepreneurs are people who combine land, labor, and capital to create new goods and services Example: Bill Gates, Oprah, Mark Zuckerberg

Quick Search Challenge 1. What is this entrepreneur’s famous accomplishment? 2. Identify the factors of production (land, labor, and capital) that this entrepreneur used. 3. How was this person able to arrange the factors of production to make a successful business? 4. What risks did this entrepreneur take? What was his or her reward?

Last note on scarcity… Goods and services are scarce b/c the land, labor, and capital used to create them are scarce – Example: In ‘N Out fries

Summary 1.In your own words: Economics is _________ 2.The factors of production include _________ 3.Explain how scarcity and economic resources relate to one another.

Factors Chart 1.In groups of 4, you will choose one good to sell 2.On your paper, you will: 1.Include your product name 2.Names of the entrepreneurs 3.An illustration of your product 4.brief, 3-5 sentence company description answering the following: what is your product? What is unique about it? Why are you selling it? Who are the owners? Who are the customers you are trying to target? 5.A 3-column chart showing 15 factors used to produce your good, each factor should have at least 3 factors represented; also, at least 5 of the factors need to be drawn, not written

Opening Activity Your favorite band is in town and you want to go, but the tickets are $50. You could buy the ticket, or you could – Use the money to see 5 movies – Buy a pair of jeans – Save the money for vacation What do you choose? Why? List 3 other things you could use the money for.