2. WARM UP  Make a list of 10 things you want!!!  What is the difference between a “Need” vs. a “want”?

3. Scarcity The Economic Problem

4. SCARCITY Limited Resources

5. SCARCITY Unlimited Wants

6. Economics Is…  The study of limited resources but unlimited wants, which forces people to make a CHOICE!

7. Opportunity Cost  How much does it cost you to “attend” this particular “class session”? Think about it! Before going on, try to come up with an answer to this question. Talk with a partner.

8. Opportunity Cost  To answer the question, you should have asked yourself what else you could be doing during this time?  Next, prioritize all of these other activities.

9. Opportunity Cost  The first item on your list of alternative activities is the opportunity cost of attending this class.  Every activity has a cost - what you gave up.

10. Opportunity Cost  Because resources are scarce, choices need to be made.  Choice results in cost.  The cost of any choice is what you had to give up.  This is called Opportunity Cost.

11. Economics: TWO BRANCHES MicroeconomicsMacroeconomics “ Small Picture” “Big Picture” Study of individual Study of the economy units. as a whole. Looking at one thing Concerned with the at a time TOTAL picture Individual decision making Societal decision making

12. Four Factors of Production  Land-natural resources  Labor-an individual providing his/her services for wages  Capital-equipment that can be used for production  Entrepreneurship-someone that uses the first three resources to make a profit. Considered to be a “risk taker” and business leader.

13. Charlie and the Chocolate Factory Questions  1. Identify 2 things that are scarce in the movie.  2. Who is the main character? Describe his socioeconomic background.  3. What does Willy Wonka specialize in? Determine whether it’s related to micro or macroeconomics. Why?  4. What type of incentive does Wonka offer to the kids? How many winners are there?  5. What is the main character’s Opportunity Cost? Why does he almost give up the prize?  6. Why did the employees lose their job at the factory?  7. Give one example of each of these: land, labor, capital, and entrepreneurship in the movie.

14. Copy the Table in your Spiral Notebook!!! LandLaborCapitalEntrepreneurship

15. Determine which of the four factors of production it falls under:  Computer  Forests  Cab driver  Bakery Store Owner  Petroleum  Automobile  Brain surgeon  Factories  Tractor  Highway system  Radio  Mountains  Small restaurant owner  Minerals  Pencil  Computer software developer  Waitress  Ocean  Fish

16. Come Up With 3 Examples of Your Own and include it in your table  Land:  Labor:  Capital:  Entrepreneur:

17. Collage of the Four Factors of Production (work with a partner)  Create a collage that illustrates the four factors of production.  Divide your paper into 4 equal parts, and have each “box” represent one of the four factors of production. Label one under each box.  Find pictures that fall under each category.

18. THE FOUR FACTORS OF PRODUCTION LandLabor CapitalEntrepreneurship

19. Due to scarcity, every Society Must Answer 3 Questions: 1. What goods shall we produce? 2. How shall these goods be produced? 3. For whom should the goods be produced?

20. In the U.S. the three Qs are answered as follows: 1. WHAT TO PRODUCE? U.S. production leans towards consumer goods & service 2. HOW TO PRODUCE? U.S. believes in private enterprise (corporations and small businesses privately owned) 3. FOR WHOM TO PRODUCE? U.S. production leans towards the large middle class