Take three minutes to do the following:

Study Figure 5 “World Population Growth Rate” on p.SH10 Where is the greatest population? Lowest population? Why would economist care about world population?

Study Figure 9 “US Land Use and Land Cover) on p. SH-12 What are the two biggest uses of land in the US? Is that surprising to you? Yes or no Why would an economist care how we use our land?

GRAPH STUDY

Grab a textbook and finish the assessment on page 8-9

Turn in when done

BELLRINGER

Day 1 (Monday) Check homework (supplies) Discussion: scarcity and resources Textbook reading: p. 3-8 Classwork: Review and assessment p. 8-9 (TURN IT IN)

Day 2 (Tuesday) Bellringer (Finish assessment p. 8-9) Notes: Scarcity and FOP Review classwork from Day 1 Exit ticket: identify FOP in a business and define scarcity

AGENDA

SCARCITY & FACTORS OF PRODUCTION

Students will demonstrate an understanding of the four factors of production by identifying factors in a fictitious business

Students will define the word scarcity as an exit ticket

Students will demonstrate an understanding of how scarcity and the FOP are linked by completing an assessment on page 8-9 in their textbook

OBJECTIVES

What is an example of a “need”? Something that is absolutely essential for you to survive

Water Money House

What is an example of a “want”? Something that is superfluous (means extra!) to your needs. You

do not need these things to survive. Pizza A mansion Abercrombie hoodie

NEEDS VS. WANTS

IDENTIFY:

How would you explain the difference between goods and services?

Goods: Tangible items you can hold in your hand

Services: Things that you pay someone to do for you

GOODS VS. SERVICES

WHICH ONES ARE WHICH?

Limited quantities of resources to meet unlimited wants

SCARCITY

What is scarcity?

Limited quantities of resources to meet unlimited needs!!

CFU

Factors of production + scarcity = economics

Economics: The study of scarcity and how scarcity affects the world around us

FACTORS OF PRODUCTION

LandLaborCapital (human, physical, financial)Entrepreneur

FACTORS OF PRODUCTION

Land: all natural resources. Key = NATURAL

Labor: Physical actions performed that require no specialized knowledge or upper level education

Entrepreneur: Someone who combines the factors of production to create a business.

FACTORS OF PRODUCTION

Financial capital = cash money!! You need money to start a business!

Human capital = knowledge and skills a worker gains through education and experience

Physical capital = The “stuff” you need to build a business (building, tools, etc….)

TYPES OF CAPITAL

An office building? Physical capital

An assembly line worker? Labor

A tree used to make paper? Land

Unused soil? Land

An artist? Human capital

A business owner? Entrepreneur

WHICH FOP?

You wanna start a business that specializes in writing research papers for other students. Identify something for each of the five factors of production that you will need in order to successfully get this off the ground….

SOOOOO…..

Factors of production:

Land Where will this business be located? Your house? Will you buy a

store front building? Labor

Who will be physically typing the papers? You? Hiring workers? Capital

What types of skill sets will you (or your workers) be required to have (Human capital)? What tools will you need to be successful in this business? How much money to get started?

Entrepreneur You!

Add that with scarcity (people have scarce time and money, not many competitors) and you will have a successful business

PAPER WRITING BUSINESS…

Let’s go over yesterday’s classwork…

REVIEW

On your whiteboard:

Define Scarcity

List the factors of production

EXIT TICKET

Identify an example of each of the five factors of production for the Subway in Windsor

HOMEWORK