Transcript Economic Resources

Economic Resources
Factors of Production
1.
Natural resources
2.
Labor
3.
Capital
4.
Entrepreneurs
Factors of
production
Natural
resources
Explain
Labor
1.
2.
3.
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2.
3.
1.
2.
3.
Capital
Entrepreneur
1.
2.
Natural Resources
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Any gift of nature that
makes production
possible
Examples: fields, rain,
forest, minerals, oil
Labor
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Human resources
Any way that people
contribute to the
production of goods
Can be both physical
and mental
Capital
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Tools, machinery, and
buildings used in
production
Most capital is a result
of production
Consumer goods
satisfy wants directly
and capital goods
satisfy wants indirectly
Entrepreneurs
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People who start a new business, introduce
new products, and improve management
techniques
People take risk to make money
Driving force in the economy
Gross Domestic Product
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GDP is the total dollar value of all final goods
and services produced in a country in a year.
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It is an important measure of the standard of
living- the quality of life based on the
possession of necessities and luxuries that
make life easier.
Bellwork
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Define Key Terms page 434
Answer the following
questions from 19-2
1.
2.
3.
4.
5.
6.
7.
8.
What does the circular flow chart on page 429
demonstrate?
What is a product market?
How does a product market differ from a factor
market?
Why is economic growth important?
How do businesses increase productivity?
What is specialization?
How is division of labor a form of specialization?
How does the economic interdependence affect
productivity?
Bellwork
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Define key terms on page 438
Consumer rights
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Congress has passed many laws that protect
the rights of the consumer
For example identifying the contents and the
weight
Consumer Bill of Rights
1.
Right to a safe product
2.
Right to be informed
3.
Right to choose
4.
Right to be heard
5.
Right to redress
Your Role as a Consumer
1.
2.
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6.
Uses of income
Decision making
What are your goals?
Saving for the future
Saving regularly
Decisions about your savings
Uses of Income
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Disposable income- money left over after
taxes
Discretionary income- money after paying
bills
Charge account- line of credit at a particular
store
Credit card- can be used at any store that
accepts that card, then the credit card
company sends a bill to the consumer
Decision Making
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Involves opportunity cost
The cost of the next best alternative for the
same money
Example: do I spend $100 on pants or buy
something else with that $100
What Are Your Goals
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If you want a new Ipad you may do extra
chores to pay for it.
You will not get some new shoes until you
have your Ipad
Create a budget
Saving for the Future
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The way to make large purchases like cars or
homes is to save
Saving is when you set aside a portion of
your money every month
Saving Regularly
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Some business can take some of you money
from your check and put it in a savings
account for you
Others may put money in savings themselves
People can earn interest on their savings
account
Deciding About Your Savings
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The more you save the more you will have
later
Deciding how much to save is up to you
You should ask yourself these questions
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1. How much do I spend everyday?
2. What’s my reason for saving?
3. How fast will my savings grow?
4. How much will I make in the future?