1. Warm-Up 8/18 1. Why can’t everyone have everything they want?
2. What determines what makes something valuable?

2. Agenda 1. Warm-Up 2. Finish Main Idea Log “Yes Economics is a Science”
3. Scarcity and the Science of Economics
H.W. Economics Checklist- Answer survey and then have an adult answer survey
The students will discuss and apply economic concepts to their own lives and

3. Science of Economics

4. Your Wish List In your ideal scenario what… Kind of car do you drive?
Type of house you own and location of house?
What types of clothes, brands, shoes are in your closet?

5. Fundamental Economic Problems
Society does not have enough resources for all (scarcity)
Economics looks at the balance of competing wants & scarcity
A want is a way of expressing a need
TINSTAAFL- b/c someone has to pay for production nothing is ever “free”

6. Three Basic Questions
Cultural/current events can determine WHAT to produce
Supply of people or machines can determine HOW to produce
Society must determine FOR WHOM to produce

7. The Factors of Production
Scarcity of “nature’s gifts” (land) becoming worse
Capital (goods) is the result of production
Labor varies in quantity and quality throughout history
Entrepreneurs start new businesses, bring new products
Production requires all factors

8. Goods Services & Consumers
Goods are econ useful & satisfy a want
Consumer good v. capital good
Durable v. nondurable goods
Services are econ products provided by someone
Consumers indulge in consumption to satisfy wants/needs

9. H.W. Economics Checklist
Answer survey and then have an adult answer survey
Pick two areas where you and the adult differed.
State why and how the adult and you differed in the two areas

10. Agenda 1. Warm Up 2. Discuss Basic Economic Concepts
3. Levi’s Jeans Factors of Production, Application of Factors of Production
The students will read for comprehension and apply concepts when answering questions.

11. Warm-Up 8/19
1. Why do economist argue there is no such thing as a free lunch? Do you agree or disagree with that statement? Why?
2. Explain in your own words what is meant by the principal of scarcity and how it applies to gasoline.

12. Value, Utility, and Wealth
Some necessities have little value, some non necessities have lots
Scarcity required for value
Not all of us have same level of utility for a good/service
Scarcity + utility of a good = value
Goods counted for wealth, services are not
Smith ‘people are source of wealth’

13. Markets
Markets are the means by which buyers and sellers carry out exchange.
Product markets
Target, The Gap, Amazon.com
Resource (factor) markets
Labor market
Forests
Machinery

14. Circular-Flow Model 4 elements Households Product markets Firms
Stores, where you purchase goods
Firms
Companies that make products
Resource markets
Suppliers of resources

15. Productivity & Economic Growth
Productivity (measure of output produced by input over times) #1 factor for econ growth
Applies to all FoP
Div of labor aims to make workers more proficient
When FoP do job more efficiently then others they specialize
Gov’t and businesses benefit when they invest in human capital