Lesson One Using Resources to Produce Goods and Services in Michigan The Economy of Michigan Unit Two:

the study of places as well as how people interact with the environment of different places. GEOGRAPHY

An important example of human/environment interaction in Michigan is the way in which people have used natural resources. Describe one example oh how people have interacted with the environment of Michigan.

The BIG Ideas  Geography is the study of places and how people interact with the environment.  One way people interact with the environment is by using natural resources.  Economics is the study of how people use resources to produce goods and services that people need or want.  Natural resources are studied in both geography and economics.  People also use human and capital resources to produce goods and services.  An entrepreneur is someone who combines the natural, human and capital resources to produce goods or services.

natural resources things in nature that people find useful Example: Water, soil and trees are natural resources.

Natural Resources  Fertile soil  corn, soybeans, potatoes, apples  Water  manufactured goods such as cars  Trees  lumber, furniture  Iron  cars, tools  Limestone  steel, cement  Oil  plastic  Sand  glass

economics the study of how people use limited resources to produce goods and services that people want or need. Example: In economics you study topics such as economic systems, trade, and production

When you identified products that could be made from natural resources you were actually studying economics.

economy activities related to making, trading and selling goods and services Example: Making cars has been an important part of the economy of Michigan for a long time.

What natural resources are needed to produce this pencil? The economy of Michigan is dependent on our natural resources and the production of lots of different kinds of goods. Possible answers include trees for the wood, soil to grow the trees and water for the paint.

Vlasic Company has been making these pickles using the natural resources of Michigan for many years.

Product Natural Resources Needed to Produce it Michigan Products and Natural Resources Sample Answers water Sand – for the glass jar Soil to grow cucumbers Cucumbers Salt Water Trees Soil Water Trees Soil Petroleum (oil) to make the plastic Minerals ( metals) Bees Water Petroleum (oil) to make the plastic container

human resources workers and their skills Example: Truck drivers, doctors, and teachers are human resources.

What human resources are needed to produced the pencil? Possible answers include a person who grows trees, the person who cuts down trees, a designer, a factory worker, a truck driver, etc.

capital resources goods that are used to produce more goods and services Example: Factories and tools are capital resources.

What capital resources are need to produced this pencil? Possible answers include paint, a saw, a factory, a truck, a machine, tools, etc.

Natural Resources Human Resources Capital Resources Resource Chart What kinds of resources are needed to produce a car?

Natural Resources Human Resources Capital Resources Resource Chart – Sample Answers What kinds of resources are needed to produce a car? Water Iron and other minerals Sand – for glass Petroleum (oil)- for man-made rubber Rubber Trees – for natural rubber Designer Engineer Factory Worker Truck Driver Oil Drilling Crew Tools Machines Robots Factory Oil Drilling Rig (Derrick) Tap – for Rubber Tree Truck

entrepreneur someone who combines natural, human, and capital resources to produce goods or services Example: Henry Ford is an example of a Michigan entrepreneur.

Meet an Entrepreneur of the Past Henry Ford Highlight all of the numbers while you read? What do these numbers mean?

Informational Text Informational text can have different kinds of text patterns. Text selections like this one using dates or years follow a sequential text pattern. In other words, the information is presented in the order it happened.

Henry Ford Henry Ford was born in 1863 in what is now Dearborn, Michigan. He grew up on his family’s farm and went to a one-room school. From an early age he was interested in tools and how things worked. He was especially interested in steam engines. In 1879, he left home and went to nearby Detroit to work as a machinist. He made extra money by repairing and selling watches. He worked for many different companies and became good at operating steam engines. In 1891, Henry Ford became an engineer with the Edison Illuminating Company. He became Chief engineer for the company in This job gave him enough time and money to do experiments with engines.

In 1896, his experiments led to his invention of a self-propelled vehicle, or ‘horseless carriage.’ This was an early type of car, or automobile. It had four wire wheels that looked like bicycle wheels. It had only two forward speeds and could not go backwards. After this, he decided to start his own business making automobiles. The company he started became Ford Motor Company. In 1908, this company began making the Model T. This automobile, or car, was easy to drive and take care of. It became a huge success. In order to make enough of these cars Henry Ford opened a large factory in Highland Park, Michigan in 1910 By 1918, half of all the cars in the United States were Model Ts. Ford Motor Company continued to grow and grow. It is still a very important company today.

Questions about Henry Ford  What was one reason the Model T was such a success?  Because the car was so successful, what did Henry Ford decide to do?  What is the main idea of the last paragraph?  What made Henry Ford an entrepreneur?

Do you think there are still entrepreneurs in Michigan today?

What goods or services do you think Michigan entrepreneurs are producing today?

A Modern Entrepreneur Grosse Pointe Woods resident Richard Marks has created an electric low-speed vehicle, EcoV, which he hopes will interest the fleet vehicle market and then the local community. Photo by Amy Salvagno Source: Va-Va-Voom! 1 July page-Articles/2008/ /GF- ECOV.asp

A Modern Entrepreneur  Richard Marks was a former General Motors engineer.  He is the inventor of the EcoV, an electric low speed vehicle.  In the past few years he has built his own company, based in Detroit, to manufacture this economical vehicle.  The vehicle is pure electric and economical to own and operate. It is almost maintenance free.  It has no emissions, noise or odors.  It is designed for city driving and can go 25 miles per hour.  It currently costs just under $10,000.

Source: EcovElectric. 1 July

Assessment List the three types of resources used to produce goods and services. List two examples of each kind of resource that would be needed to make this Michigan product ______________ Resources ______________ Resources ____________ Resources