Economics The science of goods Michael Quinones, NBCT

Think about the two images below and describe some of the differences between them: What are the possible causes for what you see? Have choices contributed to what you see? [Be sure to support your answers with examples to explain your point] APK: Activation of Prior Knowledge Write 3-5 sentences answering the following questions.

Question of the Day How does economics affect your life?

Key Vocabulary Terms Describe and explain the following terms in your own words:  Economics  Wants  Needs  Labor  Land/Location  Capital  Entrepreneur  Productivity  Resources  Factors of Production

Economics  The study of money and things of value.  This includes how to make sound decisions to acquire things you need.

Needs  Items needed for survival or basic health.  Americans are fortunate to have more choices than most countries.

Wants  Items not needed for basic survival.  These are considered comfort items.  Luxuries that are not necessary.

Four Factors of Production The four essential/necessary items that drive economic activity Land/Location- The place where things will happen in business Land/Location- The place where things will happen in business Labor- Person/people doing the work. Labor- Person/people doing the work. Capital- Items needed/required to generate a profit. Capital- Items needed/required to generate a profit. Entrepreneurship- The person willing to take the necessary risk or sacrifice to make a business work [usually unique and innovative]. Entrepreneurship- The person willing to take the necessary risk or sacrifice to make a business work [usually unique and innovative].

Labor  Effort put forth by workers to create a product.  Different types of labor are considered more valuable.  Wages or salary is based on the value of the labor.

Capital  Capital goods are anything that can be used to help generate money or make products.  Prime Examples: people and machines.

Entrepreneur  A person who risks his/her time and money to financially succeed in business.  His/her goal is to make a lot of money.  Helping other people is secondary.  Usually, successful entrepreneurs have unique business ideas, concepts, and products that no other company has at the time. Bill Gate Oprah Winfrey Carlos Slim Donald Trump

Land/Location  The last item needed to power an economy is land or location.  This is the area necessary for economic interaction may take place [farmer planting crops, store selling products, etc.]

Check yourself What are the four so called Factors of Production? [give an example for each] [The factors necessary to cause economic activity to occur]

Productivity  This is a measure of how good or successful a business or entrepreneur is.  A business that makes a lot of money is said to be productive.

Natural Resources  Renewable  Can be replaced.  Things used to produce products.  Can be replaced easily or quickly.  Nonrenewable  Cannot be replaced quickly or maybe not at all.  Can be replaced at great expense.

Content Frame Economics is best described as ___________________________. The biggest difference between wants and needs is ___________________________________________________. I would describe labor as _____________________________. If I was the owner of a McDonald’s restaurant 3 examples of capital products I would use are ____________, ___________ and _____________. Oprah Winfrey, Donald Trump and Bill Gates are considered entrepreneurs because they ___________________________________________________ ___________. The 4 factors of production are ____________, _______________, ____________________,and __________________. The biggest difference between renewable and non-renewable resources is ________________ ______________________________________________.

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