1. Bell Ringer
Generate a list of ten things that come to mind when you hear the word “Economics”

2. What is Economics?

3. Goods and Services
Before getting into the definition of economics, you must have some basic understanding of the difference between a good and a service.

4. Goods and Services
A “good” is something that is tangible that satisfies people’s wants and desires
A “service” is something that is intangible that satisfies people’s wants and desires

5. Goods and Services

6. Wants and Desires
Now you know the difference between a good and a service, and know the difference between tangible and intangible, what are the wants and desires of all individuals??

7. OUR WANTS ARE UNLIMITED!
WE WANT EVERYTHING!!!
OUR WANTS ARE UNLIMITED!

8. Wants and Desires
We want food, we want water, we want good grades, we want a haircut, we want money, we want more money, we want a home, we want groceries, we want furniture, we want a car, we want a relationship, we want happiness, we want children, we want to breathe one more breath, we want, we want, we want…
The list is endless.

9. Definition of Economics
So… what is the definition of economics?
“Economics is the study of how individuals and society, experiencing virtually unlimited wants, chooses to allocate its scarce resources to satisfy those wants.”
Great. Sooo… what does that mean?

10. Definition of Economics
“Economics is the study of how individuals and society, experiencing virtually unlimited wants, chooses to allocate its scarce resources to satisfy those wants.”

11. Definition of Economics
“Economics is the study of how individuals and society, experiencing virtually unlimited wants, chooses to allocate its scarce resources to satisfy those wants.”

12. Scarcity What does it mean when something is scarce?
There is a limited amount of it.
All resources are limited.
It’s as if there’s a constant fight between our unlimited wants and our limited resources.

13. Scarcity
When our unlimited wants come up against our limited resources, there is always a cost.
This cost can be more than monetary…
There are social costs, emotional costs, health costs, etc.
Nothing(!) on Earth is “free”
“There’s no such thing as a free lunch.”

14. Definition of Economics
Economics = Scarcity
Scarcity = Wants > Available Resources
Therefore…
Economics = Wants > Available Resources

15. Definition of Economics
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16. Types of Resources 1. Land
Land is a scarce resource because there’s a limited amount of it.
In economics, land means any natural resource within, on, or above the earth.
Examples??
Air, water, raw materials

17. Types of Resources 2. Labor
Labor is a scarce resource because there’s only so many people willing and able to do certain jobs.

18. Types of Resources 3. Capital
In economics, capital refers to a physical item used in the production process.
Examples??
Capital is a scarce resource because there are a limited number of factories, machines, etc., and only a certain number of people that can afford them.
When you think capital, think…

19. Factories!

20. Types of Resources 4. Entrepreneurship
An entrepreneur is an individual who is willing to take a risk to start a business.
Why are entrepreneurs a scarce resource?
Because there are a limited number of individuals that want to start their own business.

21. Review Goods are _________ ; services are __________
Wants are __________; resources are __________
Economics = ________ > __________
The four types of scarce resources are ______, ______, ______, & ______

22. Review
Create a definition of economics in your own words.

23. Review
Pg. 7, Questions #2 & 9