1. ECONOMICS YOU CAN’T ALWAYS GET WHAT YOU WANT…

2. Why can’t we always get what we want?
There is a limited amount of
resources to fulfill our wants
Our wants are unlimited but
the resources are limited

3. What about resources?
All goods, physical objects you can touch & services, intangible objects you cannot touch are scarce because the resources needed to produce them are also scarce.
Scarcity and shortage are NOT the same. A shortage is a temporary condition, like a shortage of building materials after a hurricane.
Since no resource has an unlimited supply, scarcity exists all of the time.

4. Factors of production
Capital resources –
consist of the tools,
machines & buildings
that are used in the
production of goods and services.

5. Factors of production
Entrepreneurs – combine land, labor, and capital in new ways to produce goods & services. They often supply the vision to turn ideas into realities

6. Factors of production
Labor: the physical efforts exerted in the production process that go into producing goods & services.

7. Factors of production
Land: gifts of nature such as crude oil, water, vegetation, minerals, etc.

8. Scarcity
Scarcity forces you to choose
scarcity
choice

9. Productive Resources: CELL
Capital: tools and machines
Entrepreneurship: assemble land, labor and capital to produce goods & services
Labor: work for wages
Land: natural resources

10. Tradeoffs & Opportunity Cost
In making a decision, you need to consider all of your options and the tradeoffs they represent. Your opportunity cost will be the value of your next best choice once you decide

11. Opportunity Cost
There may be numerous trade offs to any decision, but there is only one opportunity cost.
An opportunity cost of a decision is the value (in time, money, etc.,) of the next best alternative. In other words, it is the cost of the decision. It is the next best thing – it is what we “lose when we choose”.

12. Answer the following questions
Based on what you learned, why can’t you always get what you want?
How does scarcity affect your daily life?
What are some of the opportunity costs of your daily decisions?
What are the factors of production?