1. 1 Essential Question: Define the term economics, explain the difference between goods and services, Identify and give examples of the factors of production and explain the goal of entrepreneurship An Economic Way of Thinking SECTION 1

2. 2 Economics Economics is the study of the choices that people make to satisfy their wants and needs. Since we have evolved, most needs and wants are satisfied through the exchange of MONEY!!! An Economic Way of Thinking SECTION 1

3. 3 Goods vs. Services With an elbow partner, discuss what you think a good and a service is AND how they are different! (Do not copy- ITALICS) Good- Physical item that satisfies a want or a need (List 5 examples of Goods) Service- Act or action done for a fee that satisfies a need or a want. (List 5 examples of services) An Economic Way of Thinking SECTION 1

4. 4 Resource: A resource is any item that can be utilized to make OR obtain goods or services Most resources have a limited supply An Economic Way of Thinking SECTION 1

5. 5 Factors of Production: There are four factors of production or the things necessary to produce goods or services natural resources- example- trees, metals, oil human resources- example- miner, car salesperson, teacher. capital resources- cash register, factory, semi-truck entrepreneurship An Economic Way of Thinking SECTION 1

6. 6 Factors of Production: Cont. Entrepreneurship! This last factor is important since it’s goal is to use the other 3 factors of production to create a new product (good or service) Why? Resources are limited and new products can use them more efficiently and improve the quality of life An Economic Way of Thinking SECTION 1