1. Economic Resources and Systems
Introduction to Business
Unit 1, Chapter 2

2. Unit 1, Chapter 2 Learning Targets Define scarcity.
List four factors of production.
Identify the differences between market and command economies
Explain why most countries prefer a mixed economy.

3. Economics
Understanding economic resources and systems is essential to lessening economic problems.

4. What is Economics
Study of how society chooses to use resources to produce and distribute goods and services for people’s consumption

5. Unit 1 CH 2 Academic Vocabulary
To meet needs and wants, society must produce goods and services
Scarcity – shortage of resources i.e. country may not have enough doctors
Factors of production –
The means to produce goods and services
i.e. grow wheat, build tractors to harvest wheat

6. Unit 1 CH 2 Academic Vocabulary
Natural Resources -
raw materials
Renewable-can be reproduced i.e. wheat and cattle
Non-renewable – limited or unable to be renewed i.e. coal, iron, oil
Human Resources
Knowledge, efforts and skills people bring to work
Capital Resources
Used to produce goods and services i.e. building materials, equipment
Entrepreneurial Resources
People who recognize need for new goods and services i.e. Apple IPAD

7. Making Decisions about Production
-What should be produced?
-How should it be produced?
-Who should share in what is produced?

8. Text to world connection
Find an article from The New York Times about a product or service.
Copy and paste article into notes. Write a paragraph answering the following.
Identify what types of resources are required to produce product/service. Explain availability or scarcity of product/service.

9. Types of Economic Systems
Market Economy
Economic decisions are made in the marketplace according to the laws of supply and demand i.e. USA
Command Economy
Planned or managed economy in which a central authority (usually the government makes the key economic decisions i.e. communism
Mixed Economy
State takes care of people’s needs while the marketplace takes care of people’s wants i.e. socialism

10. Academic Vocabulary
Demand- amount of quantity of goods and services that consumers are willing to buy at various prices
Supply- amount of goods or services the producers will provide at vaiours prices
Equilibrium Price – price at which the amount supplied and the amount demanded meet

11. Unit 1 CH 2 Assessment Pg 31 Complete Pg 32-33
Review what you learned #14-22
Understanding business concepts #23-30
Critical thinking #31-32
Examining the Image
Pg 32-33
Linking school to work
Speculating on shortage