1. Introduction to economics Edgenuity lessons 1.1 & 1.3
Spring Semester 2019
STATER

2. Anything used to make goods and services 3 major types:
What are resources?
Anything used to make goods and services
3 major types:
Land – things found in nature
Example?
Labor – effort and skills of people
Capital – money or assets used to make money (machinery, buildings, etc.)

3. Renewable vs. Nonrenewable Resources
What’s the difference?
One can be replaced while the other cannot
Examples?
What percentage of energy used in the U.S. do you think is renewable?
About 9% and rising

4. The idea that all resources are limited is known as…
Scarcity!
But people’s needs/wants are unlimited, therefore…
People and economies must make choices:
How should we allocate resources?

5. What makes a resource valuable?
Scarcity!
The more scarce a resource is, the more valuable it likely is
How would using scarce resources to produce a product affect the price of that product?

6. What determines the value of an item?
Quick Quiz
What determines the value of an item?
the amount of goods that are produced
the capital required to build the factory
the unlimited wants of the consumers
the resources consumed in production

7. What are the 3 major types of resources? Land Labor Capital
Quick Quiz
What are the 3 major types of resources?
Land
Labor
Capital

8. Which of the following uses a nonrenewable energy source? a wind mill
Quick Quiz
Which of the following uses a nonrenewable energy source?
a wind mill
a power plant
a fruit orchard
a swimming pool

9. The 3 Economic Questions
Whole economies and individual producers must answer these

10. 1. What should be produced?
Consider people’s needs & wants
Availability of resources
Plan how to use resources

11. 2. Who should receive the product?
Consider who has the greatest need
Understand who has authority
Identify who has greatest ability to pay

12. 3. How should the goods and services be created?
Consider how:
Things have traditionally been made
To produce items at a lower cost or higher quality
To make the biggest profit

13. Factors of Production: Another name for resources
Land is limited by:
Type
Amount

14. Labor is limited by: Capital is limited by: Population
Standard of living
Education
Geography
Capital is limited by:
The $ available to invest in production
Limited physical resources

15. Economies also have to consider…
How to benefit society as a whole.
If the 3 questions are left unanswered:
Depletion of scarce resources
Unmet needs of citizens
No economic growth

16. Quick Quiz
What is another name for resources?
Factors of production
What are the 3 economic questions?
What to produce, who should receive it, how to produce it

17. Quick Quiz
Which of the following will be accomplished by efficient allocations of the factors of production?
ensuring economic profitability
understanding whether a product will fail
fulfilling many needs and wants of society
replenishment of limited resources