WHAT IS ECONOMICS?
WHAT IS ECONOMICS?
LESSON OBJECTIVES 1. Understand what factors of production are. 2. Understand the idea of scarcity and how it forces society to choose.
SCARCIT Y
¡ S carcity (การหายาก)– when something is both desired and in limited supply.
WHAT IS ECONOMICS?
¡ S ocial science concerned with the way society chooses to use its limited resources,…
FACTORS OF PRODUCTION
¡ Factors of Production - Resources needed to produce other goods and services ¡ I n other words, factors of production are the things you need to make other things.
FACTORS OF PRODUCTION
1. Land – natural resources not made by humans (forests, fields, minerals, oil, livestock, water, etc.)
FACTORS OF PRODUCTION
2. Labor – people, with all the effort, abilities and skills
FACTORS OF PRODUCTION
3. Capital – tools, equipment, machinery, factories
FACTORS OF PRODUCTION
4. Entrepreneurship – people who bring new ideas and innovations to the economy (Steve Jobs, etc.)
FACTORS OF PRODUCTION 1. Land 2. Labor 3. Capital 4. Entrepreneurship
¡ W hat kinds of factor of production are these? § C oal? Factory? Natural Gas? Bill Gates? Hammer?
SCARCIT Y
¡ S carcity (การหายาก)– when something is both desired and in limited supply. ¡ We have scarcity in our society because the factors of production are limited and people wants are infinite.
CHOICE
¡ B ecause of scarcity, society must choose how to use its limited factors of production.
Scarcity
Choices
CHOICE
¡ B ASIC ECONOMIC QUESTIONS 1. What to produce? 2. How to produce it? 3. Who to produce it for?
Scarcity
Choices
WHAT’S THE POINT?
Scarcity
Choices
Economics studies how these choices are made and is a tool for helping people decide if society is making the right choices
LESSON OBJECTIVES 1. Understand what factors of production are. 2. Understand the idea of scarcity and how it forces society to choose.
LESSON OBJECTIVES 1. Understand what factors of production are. 2. Understand the idea of scarcity and how it forces society to choose.
SCARCIT Y
¡ S carcity (การหายาก)– when something is both desired and in limited supply.
WHAT IS ECONOMICS?
¡ S ocial science concerned with the way society chooses to use its limited resources,…
FACTORS OF PRODUCTION
¡ Factors of Production - Resources needed to produce other goods and services ¡ I n other words, factors of production are the things you need to make other things.
FACTORS OF PRODUCTION
1. Land – natural resources not made by humans (forests, fields, minerals, oil, livestock, water, etc.)
FACTORS OF PRODUCTION
2. Labor – people, with all the effort, abilities and skills
FACTORS OF PRODUCTION
3. Capital – tools, equipment, machinery, factories
FACTORS OF PRODUCTION
4. Entrepreneurship – people who bring new ideas and innovations to the economy (Steve Jobs, etc.)
FACTORS OF PRODUCTION 1. Land 2. Labor 3. Capital 4. Entrepreneurship
¡ W hat kinds of factor of production are these? § C oal? Factory? Natural Gas? Bill Gates? Hammer?
SCARCIT Y
¡ S carcity (การหายาก)– when something is both desired and in limited supply. ¡ We have scarcity in our society because the factors of production are limited and people wants are infinite.
CHOICE
¡ B ecause of scarcity, society must choose how to use its limited factors of production.
Scarcity
Choices
CHOICE
¡ B ASIC ECONOMIC QUESTIONS 1. What to produce? 2. How to produce it? 3. Who to produce it for?
Scarcity
Choices
WHAT’S THE POINT?
Scarcity
Choices
Economics studies how these choices are made and is a tool for helping people decide if society is making the right choices
LESSON OBJECTIVES 1. Understand what factors of production are. 2. Understand the idea of scarcity and how it forces society to choose.
