AP Econ- 4 Big Ideas

Welcome to Economics!

Today you’re learning just four big

ideas to start your economic

journey!

And now it begins...

Can you relate

to this?

What about

this?

Do you have enough time to do

everything you want to do?

Open Ended

What conditions can produce scarcity? 

Hints:

When have bottled water and generators been scarce in our area?

What natural event led to this scarcity?

Open Ended

What other resources do you believe will become more scarce and valuable in the next 20 years?

Poll

Turn & Talk: Discuss with your partner whether or not you believe it is right to privately own a vital resource such as water. Then vote.

• It is right to own a vital resource

• It is NOT right to own a vital resource

• 50/50 split

Economics=
study of people &
choices and how
we use scarce
resources.

MICROeconomics
zooms in to look at
people, families,
and businesses.

MACROeconomics
zooms out to look
at whole countries
and societies.

MACRO= whole countries and
societies.

MICRO= people, families, and
businesses.

Drag and Drop

MacroEconomics: focus on the bigger picture. ​ This branch of economics studies

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MicroEconomics: focus on the little picture. ​This branch of economics studies ​ ​

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Drag these tiles and drop them in the correct blank above

whole countries & the world

Individuals & Businesses

Big Idea #2:
Economists categorize
society’s resources into
four categories called
PRODUCTION FACTORS:
land, labor, capital, and
entrepreneurship.

FACTORS OF
PRODUCTION: land,
labor, capital, and
entrepreneurship.

The 4 Production factors are
used to CREATE everything in a
society

Categorize

Options (20)

Something that comes from the Earth itself

Jobs/Actions performed by humans

A good that is used for a service or to create another good

The spark or idea to combine the other three factors into a product or business

Organize images & definition into the correct Factor of Production (Production Factor/Resource)

Land

Labor

Capital

Entreprenuership

Big Idea #3:
Because resources
are scarce, society
faces trade-offs.

(In order to get something,
you have to give up
something else.)

Trade offs= giving
up something to
gain something.

Open Ended

List three trade offs of coming to school every day.

Multiple Choice

What is the opportunity cost of the man choosing to sleep in the previous image?

• Pancake Breakfast

• Watching TV

• Missing his flight

• Sleeping in

Fill in the Blanks

Economics studies how people and societies deal with

.

Open Ended

The four production factors are _____, _____, _____, and _____.

Fill in the Blanks

In order to get something, something else must be given up.

This is the concept of a _____ ___.

Fill in the Blanks

The ___________ ____ of a decision is the next-best alternative that was sacrificed (the most valuable trade-off).