1. In your Interactive Notebook: Unit.Day 5.2 Factors of Production
ON YOUR DESK: 1) laptop (warming up)
2) Interactive NB
3) (Completed) Study guide
WARM UP
If you want to make a sweater, what do you need and what do you have to do?
Today’s Agenda
Warm up & review
Factors of Production
Group Activity
Circular flow simulation
Study Guide or ACES (EC)
End of Class Quiz
Today’s OBJECTIVE(S): WRITE DOWN:
I can identify and cite examples of each factor of production
I can describe how money circulates in the economy between producers and consumers

2. Updates & Deadlines: (use assignment log!!!)
Daily: Study Guide Completion
12/10: Opportunity Cost Scenarios
12/11: Factors of Production Cartoon/Diagram
12/12: Break Even Point Worksheet
12/13: Personal Budget activity (mini-project grade)
12/13: ACES Parapraph:
What does it mean to be financially responsible?
12/13: Quiz
12/16: ACES Paragraph:
What effect does educational achievement have on career choice and income?
12/17: ACES Paragraph: How do credit scores affect interest rates?

3. Scarcity All of economics is based on the problem of scarcity
There are not enough resources for everyone
Wants are unlimited, resources are not

4. Scarcity forces us to make choices:
BASIC ECONOMIC QUESTIONS:
What to produce
How to produce it
For whom to produce it
Who gets what and how much?
Who answers these questions?
- Enter politics….

5. What goes into your pencil?

6. Factors of Production
CELL:
Capital
Entrepreneurship
Land
Labor

7. Factors of Production:
Identify each factor of production in the video clip

8. Capital When wealth is used to create more wealth
Goods used to make other goods and services
Machines, buildings, and tools can be used to make other things

9. Capital

10. Capital Goods vs. Consumer Goods
Used to make other goods
Consumer goods
Final products that can be sold or used directly

11. Entrepreneurship Taking the initiative to start a business
Requires having a business plan to succeed
Must be willing to take risks
Thinks big

12. Land Natural resources Anything not made by human beings Trees Cotton
Water
Iron

13. Land + Labor = Wealth
Wealth created when human labor adds value to natural resources

14. Labor
Human resources anything that someone does (mental or physical) to produce a good or a service
Picking crops
Designing a microchip
Bringing a meal to a table

15. Examples of wealth Can be for sale, or for personal use
Turning trees into pencils
Taking a pencil and drawing something

16. Groups of Three
Create a production plan for one of the following products:
A Big Mac, a car, a chair, a book
Create a cartoon strip or diagram that shows each factor of production required to create your product:
Capital, Entrepreneurship, Land, and Labor
Alternative Option: write a rap or poem that applies each factor of production

17. Circular flow model
Money circulates in the economy, moving back and forth between producers and consumers:

18. Circular Flow Economic Model
Quick Write:
What do companies get from people?
What do people get from companies?

19. End of Class Quiz Name the four factors of production
Where do companies like McDonalds get their money from?
How does consumer choice influence companies?

20. Extra Credit Write ACECECECES paragraph: QUESTION:
What are the factors of production required to make a Big Mac?
A – The factors of production required to make a Big Mac are…capital, entrepreneusrhip, land and labor.
C – An example of capital in making a big mac is…
Explain
C – An example of entrepreneurship in making a big mac is…
C – The land and resources required to make a Big Mac are…
C – The labor required to make a big mac involves…