Understand the economic principles and concepts fundamental to business operations Performance Indicator Explain the concept of economic resources (EC:003, EC LAP 14) Objective Define economic resources, natural resources, capital goods, human resources and factors of production List reasons that economic resources are important for business Explain why natural resources are limited Describe ways that businesses respond to limited natural resources Explain why human resources are limited Describe ways that businesses respond to limited human resources Explain why capital goods are limited Describe ways that businesses respond to limited capital goods Warm- up Activity What is this? What is it made from? What does it take to make it? How does a person come to own one? Who makes them? What are Economic Resources ? The human and natural resources and capital goods used to produce goods and services. Discussion: What economic resources do you believe are used in the production of a t-shirt? Natural Resources Items found in nature that are used to produce goods and services Discussion: What would a business do if natural resources become limited? Human Resources People who work to produce goods and services Discussion: What would a business do if human resources become limited? Capital Goods Manufactured or constructed items that are used in the production of goods and services Discussion: What would a business do if capital goods become limited? Concluding Activity Take a piece of paper and divide it into quadrants. Label each quadrant: Economic Resources, Natural Resources, Human Resources, Capital Goods Write the definition in each quadrant Now think about an item (ie. wooden table/desk, orange juice, bread, pizza) List/draw everything that falls within each quadrant Write what you think a business might do if one or more of the resources was limited or absent.