1. Warm Up – April 29 Answer the following questions on a post it:
Explain the difference between a want and a need and how wants and needs can effect the choices consumers make when buying decisions?
Describe the differences between a free market economy, a command economy, and a mixed economy. Provide an example of a country for each.
What is the difference between a good and a service?
What is a trade off? What is an opportunity cost? Provide an example of a trade off that you made in the past week? What was the opportunity cost of your decision?

2. Unit 7: THE ECONOMY
Factors of Production

3. Factors of Production The resources that go into making a product.
There are 4 factors of production:
1. Land
2. Labor
3. Capital
4. Entrepreneurship

4. Land Natural Resources and the raw materials used to make a product.
Examples-Water, cotton, wood, oil

5. Labor
The human effort that goes into making a product. The people who run machines and do the work.

6. Division of Labor Dividing the work into smaller, separate task
When labor is divided, people become SPECIALIZED.
SPECIALIZATION-when workers concentrate on a specific task and become very good at that task.

7. Specialization Benefits of Specialization:
1. Workers become an expert at a certain job or task.
2. The worker becomes better at his/her job.
3. The more you do a task, the faster, more efficient you become.

8. Specialization Problems of Specialization:
1. Workers are dependant on each other.
2. If one person doesn’t do their job, it can cause a breakdown in production.

9. Capital (Capital Goods)
The tools and machines used to make a product. (Machines, equipment, chemicals)
Money is only considered capital when it is used to buy a factors of production

10. Entrepreneurship
The leadership, the person who takes the risk of starting the business.
Usually the person who gives the money and has the idea.

11. TOD – April 29 Answer the following questions on the same post it:
1. What are the four factors of production? Describe each
2. What is specialization?
3. What are the benefits of specialization? What are the problems with specialization?