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Essential Question:Essential Question:Define the term economics, explain the

difference between goods and services, Identify and give examples of the factors of production and explain the goal of entrepreneurship

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EconomicsEconomicsEconomics is the study of the choices that

people make to satisfy their wants and needs utilizing SCARCE resources.

Originally economists would have studied people hunting, gathering, or scavenging.

Now economists study exchanges between individuals (products exchanged for MONEY)

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Goods vs. ServicesGoods vs. Services In society we produce goods and services to

exchange for money in order to get what we want.

Good- Physical item that satisfies a want or a need

Service- Act or action done for a fee that satisfies a need or a want.

https://www.youtube.com/watch?v=hriOz9yl-Ro

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Resource:Resource:A resource is any item that can be utilized to

make OR obtain goods or servicesMost resources have a limited supply

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Factors of Production:Factors of Production:There are four factors of production or the things

necessary to produce goods or servicesnatural resources- example- trees, metals, oil human resources- example- miner, car salesperson,

teacher. capital resources- cash register, factory, semi-truckentrepreneurship

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Factors of Production: Cont.Factors of Production: Cont.Entrepreneurship!

This last factor is important since it’s goal is to use the other 3 factors of production to create a new product (good or service)

Why? Resources are limited and new products or production methods use resources more efficiently or improve life.

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