1. Economics Satisfying Our Needs and Wants

2. Scarcity Goods and services are scarce because we cannot produce enough of them to satisfy everyone’s wants.

3. Satisfying our Wants and Needs Goods – Things we can touch or see that satisfy our wants or needs. Services – Actions people undertake in order to satisfy their wants and needs.

4. Production Resources Businesses use three types of production resources to produce goods and services. Natural Human Capital

5. Natural Resources Resources that are present without human interference “gifts of nature” Examples are land, timber and mineral deposits

6. Human Resources Any human effort used to produce goods and services Examples include workers and their skills, training and education

7. Capital Resources Tools of production Goods used to produce other goods or services Examples include tools, machinery and buildings. Money used to purchase these resources is called capital.

8. Identifying Resources: NATURALHUMAN CAPITAL cotton tractor marketing degree table sawscomputers water driver’s license crude oil employees factory building aluminum electrical license land

9. Identifying Resources: NATURALHUMAN CAPITAL cotton water crude oil land marketing degree driver’s license employees electrical license tractor table saws computers factory building

10. What is an economy? Part I – Introduction Part II – Economic Choices Part lll – Resources Part IV- Capital Resources Link

11. What is an Economy? Assignment - Video Voiceover Create a video voiceover with your partner by creating a script to this video about economics.

12. Levels of Economic Activity Primary – First level Secondary – Second level Tertiary – Third level Quaternary – Fourth level

13. Primary Activities Businesses involved in gathering raw materials. Examples include mining and timber companies.

14. Secondary Activities Businesses that add value to materials by changing their form. Examples include automobile manufacturers and textile factories.

15. Tertiary Activities Companies that provide business or professional services. Examples include salespeople, teachers and doctors.

16. Quaternary Activities Businesses that provide information, management and research services by highly-trained persons. Examples include property management or environmental research companies.

17. Important Note: The more developed an economy is, the greater the number and variety of activities you will find.

18. Identifying Levels of Activity _____ Hershey Chocolate_____ Pilot Gas Station _____ Luck Stone Corp._____ NTelos _____ Law Well Drilling Inc._____ Fry Appraisal Co. _____Oak Lawn Mausoleum_____ Walmart _____Augusta Medical Center_____ Hollister

19. Identifying Levels of Activity _____ Hershey Chocolate_____ Pilot Gas Station _____ Luck Stone Corp._____ NTelos _____ Law Well Drilling Inc._____ Fry Appraisal Co. _____Oak Lawn Mausoleum_____ Walmart _____Augusta Medical Center_____ Hollister ST PT TQ TT S T

20. Economic Systems The way people produce and exchange goods and services is called an economic system. Four types of economic systems: traditional, command, market and mixed.

21. Traditional Economy Goods and Services are traded without exchanging money. Also called “barter”.

22. Market Economy Production of goods and services is determined by the demand from consumers.

23. Command Economy Production of goods and services is determined by a central government, which usually owns the means of production.

24. Mixed Economy A combination of command and market economies provides goods and services so that all people will benefit.

25. The End