Economics Part 1
Presentation
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Social Studies
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9th - 12th Grade
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Practice Problem
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Medium
Dr. Sara Davis-Leonard
Used 12+ times
FREE Resource
13 Slides • 12 Questions
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Economics Part 1
7.1-7.3
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Open Ended
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Economics
study of how individuals, firms, and nations can best allocate their limited resources
Needs - things people must have to live
Wants - all of the goods and services one desires and would obtain if he/she could
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Multiple Select
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Multiple Select
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Multiple Select
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Resources
resources are things humans can put to productivity use
Natural resources - all of the raw materials in nature used to produce what humans need or want
Two kinds: nonrenewable (petroleum) and renewable (timber)
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Four Factors of Production
need to have in order to produce things needed/wanted
1. Land - not only land the business is built on but also the natural resources involved
2. Labor - contribution of human workers to the production process
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Four Factors of Production
3. Capital - all the structures and equipment involved in the manufacturing process
4. Entrepreneurship - last factor of production which consists of creative, managerial, and risk-taking capabilities that are involved in starting up and running a business
ex. Bill Gates - Microsoft
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Four Factors of Production
Time is not a factor of production
Time becomes an issue when we measure how quickly resources can be turned into usable goods and services
Ex. production time or shipping time
Productivity - the rate at which goods/services can be produced
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Open Ended
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Multiple Choice
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Scarcity
Scarcity - lack of adequate resources to obtain all of one's wants/needs
Scarce is not the same thing as rare ex. hurricanes
Pricing sets monetary value on producers' output by establishing the amount of money for which one would be willing to exchange their goods and services with consumers.
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Open Ended
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Decision Making
Consumer - economic actor purchasing or receiving goods/services
Producer - economic actor who makes or provides the goods/services
Salaries/Wages - money paid to people in exchange for their labor to produce output
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Open Ended
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Decision Making
Goods - material products made to satisfy wants/needs
Services - activities performed to satisfy wants and needs
Limited resources - could be money or materials based upon the situation which forces one to choose a situation less than ideal
ex. eat kids meal instead of big mac meal due to only having $5
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Multiple Choice
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Decision Making Model
process used consciously or unconsciously when limited resources are present
1. Define the problem.
2. Must list the alternatives
3. State the Criteria (What are your priorities)
4. Evaluate the alternatives - trade-off
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Decision Making Model
opportunity cost - value of alternative option that is lost when one makes the decision
ex. eat now or later at the movies
5. make a decision
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Multiple Choice
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Costs and Decisions Facing Producers
immediate gratification - ex. lemonade on a hot summer day
Variable costs - costs which go up and down when the amount of products that are produced changes
Fixed costs - costs which do not change
Total cost - variable cost + fixed costs
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Costs and Decisions Facing Producers
Incentives - motivate economic actors to act
Marginal Cost - cost of producing one more item
Opportunity Cost - hiring additional workers in order to make more product and sales
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Multiple Choice
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Multiple Choice
Economics Part 1
7.1-7.3
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