2. Friday, January 8, 2016 Objective: Students will be able to describe how societies answer basic economic questions and the influence of factors of production. Purpose: There are many ways that societies answer economic questions. Also, the factors of production have a major impact on several economic aspects of a product.

3. The Basic Economic Questions What to produce? This is a production choice influenced by consumer demand What are you going to make with scarce resources? How to produce? This is a resource choice How much of each resource will be used? Will it be labor intensive or will it be capital intensive?

4. The Basic Economic Questions How much to produce? This is a production choice influenced by consumer demand How much will you make with scarce resources? For whom to produce? This is an allocation choice Who gets the products after they are produced? How is this decided, by the government or in the marketplace?

5. Factors of Production Factors of Production: the resources that are used to make all goods and services They are: Land Labor Capital

6. Factors of Production Land: all natural resources extracting natural resources comes with costs What are some examples of “land”? Labor: any human effort, physical or mental, that goes into producing goods and services, including marketing, distribution, and selling

7. Factors of Production Capital: any human-made resource that is used to create other goods and services Physical Capital: All human-made goods that are used to make other goods and services Human Capital: Skills and knowledge gained by a worker through education and experience

8. Entrepreneurs Entrepreneurs: Individuals who introduce new ideas for creating new products or new ways to produce products Commonly known simply as people who start businesses Who are some well-known entrepreneurs?