Economy: The Basics

Economy: The Basics

Why Should I care about Economics?

-It deals with $

-It affects what types of jobs and how many jobs are out there

-How resources are used

-Where can I get goods that I need or want

And yes...

The future of our economy often rests with how our government is to be run.

How can the government affect the economy?

What is an ECONOMY?

An ECONOMY is a a system of producing, selling, and buying goods and services. They can happen at the local, national, or global level.

GOODS - Products people buy or use

SERVICES - Actions that people provide

CONSUMERS - People who buy goods or services for personal use

Multiple Choice

"Hunter bought an I-Phone 15 at the Verizon Store."

Which colored phrase is a "good" in economic terms?

• Hunter

• I-Phone 15

• Verizon Store

Multiple Choice

"Hunter bought an I-Phone 15 at the Verizon Store."

What is "Hunter" in the sentence above (economically speaking)?

• A consumer

• A good

• A service

Multiple Select

Select the three service jobs below:

• Mowing Lawns

• Repairing Cars

• Cashier

• Styling Hair

Factors of Production

• What will be produced?

• How will it be produced?

• For whom will it be produced?

What are the FACTORS OF PRODUCTION?

• Natural Resources/Land

• Capital

• Labor

• Entrepreneurs

Natural Resources or Land

Natural resources are raw materials needed to produce goods.

Land on which a business is built.

Service industries need to be located near potential customers.

Capital

• Capital >>>>> $$$$$$$$$$$$

• Capital is the total cost of equipment, property, and personal.

Labor

The human or man power needed to work.

This includes time, effort, skills, and talent needed to produce goods and services.

Entrepreneurs

People who come up with ideas for new products for businesses.

They risk capital and labor in hopes of making a profit.

"Profit" is the money left after land, capital, and labor are paid for.

Factors of Production on...

On the show, aspiring entrepreneurs pitch their ideas to millionaires. These millionaires provide the $ to pay for the land, capital, and labor needed for the entrepreneurs.

Multiple Select

What are the four factors of production?

• Labor

• Profit

• Natural Resources

• Capital

• Entrepreneurs