Economic Resources and Systems Introduction to Business Unit 1, Chapter 2

Unit 1, Chapter 2 Learning Targets Define scarcity. List four factors of production. Identify the differences between market and command economies Explain why most countries prefer a mixed economy.

Economics Understanding economic resources and systems is essential to lessening economic problems.

What is Economics Study of how society chooses to use resources to produce and distribute goods and services for people’s consumption

Unit 1 CH 2 Academic Vocabulary To meet needs and wants, society must produce goods and services Scarcity – shortage of resources i.e. country may not have enough doctors Factors of production – The means to produce goods and services i.e. grow wheat, build tractors to harvest wheat

Unit 1 CH 2 Academic Vocabulary Natural Resources - raw materials Renewable-can be reproduced i.e. wheat and cattle Non-renewable – limited or unable to be renewed i.e. coal, iron, oil Human Resources Knowledge, efforts and skills people bring to work Capital Resources Used to produce goods and services i.e. building materials, equipment Entrepreneurial Resources People who recognize need for new goods and services i.e. Apple IPAD

Making Decisions about Production -What should be produced? -How should it be produced? -Who should share in what is produced?

Text to world connection Find an article from The New York Times about a product or service. Copy and paste article into notes. Write a paragraph answering the following. Identify what types of resources are required to produce product/service. Explain availability or scarcity of product/service.

Types of Economic Systems Market Economy Economic decisions are made in the marketplace according to the laws of supply and demand i.e. USA Command Economy Planned or managed economy in which a central authority (usually the government makes the key economic decisions i.e. communism Mixed Economy State takes care of people’s needs while the marketplace takes care of people’s wants i.e. socialism

Academic Vocabulary Demand- amount of quantity of goods and services that consumers are willing to buy at various prices Supply- amount of goods or services the producers will provide at vaiours prices Equilibrium Price – price at which the amount supplied and the amount demanded meet

Unit 1 CH 2 Assessment Pg 31 Complete Pg 32-33 Review what you learned #14-22 Understanding business concepts #23-30 Critical thinking #31-32 Examining the Image Pg 32-33 Linking school to work Speculating on shortage