PBMF 1.2 Intro to Economics

Introduction to Economics

Economics - a science that examines how goods & services are produced, sold, and used

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the economic resources a nation uses to make goods and supply services for its population

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Factors of Production

Categorize

Options (7)

Water

Factory Workers

Vehicles

Business Owners

Animals

Professionals

Buildings

Match each resource to the correct factor of production.

Land

Labor

Capital

Entrepreneurship

​Individuals, businesses, and governments must constantly make choices about using limited resources to satisfy unlimited wants.

Scarcity develops when demand is higher than the available resources.

Economic Problem

​Economic Problem

Every economic decision has a cost. Scarcity forces choices to be made. Choosing one option means giving up other options that may have been available. A trade-off is when something is given up in order to gain something else. When a trade-off occurs, an opportunity cost is created. Opportunity cost is the value of the next best option that was not selected. Value is the relative worth of something.

Drag and Drop

A ​

Placeholder

is when something is given up in order to gain something else. When a trade-off occurs, an ​

Placeholder

is created. Opportunity cost is the value of the next best option that ​

Placeholder

selected. ​

Placeholder

is the relative worth of something.

Drag these tiles and drop them in the correct blank above

trade-off

opportunity cost

was not

was

Value

Labelling

The Systematic Decision-Making Process is the process of choosing an option after evaluating the available information and weighing the costs and benefits of the alternatives

Place the steps in the order you think they belong.

Drag labels to their correct position on the image

implement decision

choose best alternative

research alternatives

define problem

evaluate decision

• can help identify the best option

• process of choosing an option after evaluating the available information and weighing the costs and benefits of the alternatives

• can be used by both businesses and individuals

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​Systematic Decision-Making Process