1. ECONOMIC RESOURCES

2. Goods vs. Services Goods: Actual physical items – books, cars
Services: Work performed for someone else – haircuts, home repairs, entertainment

3. Factors of Production
Resources necessary to produce those goods and services

4. Define Production Production: Product: The act of creating value
The end result of creation
What is created

5. capital entrepreneur labor Factors of Production
Natural resources (land)
capital
labor
entrepreneur

6. land Factors of Production minerals forest water sunlight air
Elements of land include: forest, air, water, minerals, and sunlight. Every tangible product comes from land. Everyone needs access to land in order to live.
water
sunlight
air

7. Mental or physical activity in production
Factors of Production
labor
Mental or physical activity in production
What are each of these examples producing?

8. Previous manufactured goods used to make other goods and services.
Factors of Production
capital
The hammer, screwdriver and saw are each previously manufactured goods. These pieces are being used by the carpenter to create a table. The table will be sold for more money. These are examples of capital.
Previous manufactured goods used to make other goods and services.

9. Jennifer Hyman and Jenny Fleiss
Factors of Production
entrepreneurs
NAVEEN SELVADURAI
Mark Zuckerberg
Each of these people is an entrepreneur. They all made it to the younger than 30 top 30 entrepreneur list.
Maverick carter
Jennifer Hyman and Jenny Fleiss
A person who starts a new business, introduces new products, and improves a process to make a profit.

10. What are the factors of production?
We do it! As a group model for the students how to think through the process of FOP in relation to the cabbage. Fill out a chart as a class.

11. On L: Factors of Production

12. You Do It! (L)
On the same L, create a second FOP chart. Choose 1 of these products, and with a partner list as many examples for each category as you can.

13. Gross Domestic Product (GDP)

14. What is GDP?
Gross Domestic Product (GDP): total value, in dollars, of all the final goods & services produced in a country during a single year
What does FINAL mean?
Does NOT include intermediate goods or used goods
Final good – good actually sold to its user (loaf of bread)
Intermediate goods – goods that go into making it (flour, wheat, sugar, etc.)

15. ECONOMIC ACTIVITY

16. Promoting Economic Growth
Economic growth = when nation’s total output of goods & services increases over time

17. Productivity
Productivity = measure of amount of output produced by given level of inputs in a specific period of time
Goes up when same amount of input = more output in same amount of time
OR when less input = same output

18. Specialization
When a person/ business/ country produces a specific good or service
Improves productivity  WHY?

19. Example of Specialization
Raleigh Running Outfitters
If you were shopping for the best running shoes and nothing was stopping you from purchasing a great pair of shoes, would you buy them at Kohl's or Raleigh Running Outfitters?
With a partner decide which option you would choose. Have a class discussion on specialization and buyer choice.
Why? 19

20. Division of Labor
Division of labor = breaking down job into small tasks performed by different workers
Makes use of differences in skills, abilities (specialization!)

21. Human Capital Sum of people’s skills, abilities, motivation
Treat employees well/ develop their abilities = higher quality products + higher profits

22. Economic Interdependence
Interdependent = ?
Trade-off: gains in productivity/ income from increased specialization vs. cost associated with loss of self-sufficiency