Econ Unit 1 Remediation (SSEF1-3)

Econ Unit 1 Remediation (SSEF1-3)

In order to be eligible for the Unit 1 Re-Test, you MUST do some type of remediation. You may come to tutoring with Mrs. Scripture (check for dates/times) OR you may complete this quizizz lesson. You must make AT LEAST 90 ON THIS ACTIVITY TO RE-TEST!!! This means you may have to take it more than once!

SSEF1 Explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.

• ​A. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.

• ​B. Define and give examples of productive resources (i.e. factors of production): natural resources (i.e. land), human resources (i.e. labor and human capital), physical capital and entrepreneurship

• ​C. Explain the motivations that influence entrepreneurs to take risks (e.g., profit, job creation, innovation, and improving society).

• ​D. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.

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Scarcity

​What is scarcity?

• ​a basic condition that exists when unlimited wants exceed limited productive resources

• ​in order for something to be considered a scarce item, it must be limited in supply AND desirable

​Why do we have scarcity

​Simply put, we lack the ability to get everything we want because resources are scarce!

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​Because EVERYTHING is scarce, we are forced to make decisions. This includes:

• Do you go to work on Friday, or do you go on a date?

• ​Should you go to prom with JuJu or SuSu?

• ​At lunch, will you get the Smucker Uncrustable or the pizza?

• ​Are you going to go to college at GSU or out of state?

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​You are forced to decide one or the other because of scarcity!

​Productive Resources

​What are productive resources?

• ​all of the scarce items used in the production of goods and services in the economy

• ​there are four types of productive resources:

  • ​Natural Resources

  • ​Human Resources

  • ​Capital Resources

  • ​Entrepreneurship

​Natural Resources

• ​"Gifts of nature"

• ​comes from the Earth

• ​humans are unable to produce these resources on their own

• ​only the "natural" form of the object...trees in the production of paper would be an example, but the paper would NOT be a natural resource if you used it for a menu at your restaurant

​Human Resources

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​Capital Resources

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​Entrepreneurship

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​Opportunity Cost

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​Motivation for Entrepreneurs

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​SSEF2 Give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.

• ​A. Define marginal cost and marginal benefit.

• B. ​Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.

• ​C. Explain that people, businesses, and governments respond to positive and negative incentives in predictable ways.