UNIT 6 The Problem of Scarcity. Objectives Explain why individuals and nations must make economic...
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Transcript of UNIT 6 The Problem of Scarcity. Objectives Explain why individuals and nations must make economic...
Objectives
Explain why individuals and nations must make economic choices.
Give an example of an opportunity cost. Describe what an economic system
does. List the three major economic inputs
and give an example of each.
Objectives
Explain why infrastructure is important to an economic system.
Describe the benefits of advanced technology.
Marketing Terms
scarcity opportunity cost economic system economic inputs economic outputs land natural resources labor
entrepreneurship capital capital goods final product infrastructure technology advanced technol
ogy
Scarcity
Scarcity not enough
resources– to meet needs
affects individuals and nations
Give examples of scarce resources.
Scarcity
Some resources water trees oil
A resource can be used only once oil used to fuel a car
cannot be used to heat a home
Scarcity
Money is also a scarce resource the money you spend on one thing
– cannot be spent on something else example: the money you spend on food
and snacks– cannot be spent on new clothes
The opportunity cost of a decision is the value of the item you did not choose
Scarcity
The opportunity cost of the decision to
buy dinner at a restaurant– is the cost of
the clothes you did not buy
An Economic System
A system accomplishes a task with these three parts inputs a mechanism outputs
The purpose of most systems is to produce the outputs
An Economic System
An economic system is developed by a nation
– to turn its resources into products
An economic system consists of economic inputs a mechanism economic outputs
An Economic System
Economic inputs resources used to make products
Mechanism the process of production
Economic outputs goods, services, and ideas
Name some economic outputs of theUnited States economy.
Economic Inputs
Economic inputs are the resources used to make products
Three categories of economic inputs land labor capital
Think of a product you use. What resources were used to make this product?
Land
Land includes all of a
nation’s natural resources
Examples soil, water,
minerals, plants, animals, and climate
Land
Natural resources are scarce unequally distributed
among nations
What natural resources are scarce in the United States?
Labor
Labor the people who
make products
Labor includes workers’ levels
of education, skills, and productivity
Labor
Entrepreneurship is the ability to start new businesses
An economy with many successful entrepreneurs is usually a successful economy
Capital
Capital manufactured products
– used to make other products
Capital goods is another term for capital because capital consists of
– goods used to make other goods
Capital
A final product is a good that is purchased by a consumer
– examples: cars, clothing, shoes, refrigerators, and books
Capital goods are used to make final products
Name some final products that you buy.
Capital
The term capital is also used as the short form for the term financial capital
Financial capital is the money used to buy capital goods
So the term capital can refer to capital goods (machinery, etc.) or money used to buy capital goods
Infrastructure
Infrastructure necessary for
a modern economy
includes transportation systems and utilities
Infrastructure
Transportation systems highways, bridges, railroads, public
transportation, seaports, and airports
Utilities sanitation systems, electric power plants,
water systems, and telephone service
Describe examples of infrastructureyou have used today.
Technology
Early technology simple machines machines powered by people or animals
Advanced technology industrial technology
– steam and combustion digital technology
– electricity used to control data
Review
What are the three parts of a system? Name the three categories of economic
inputs. What is the difference between capital
goods and final products? Define infrastructure and give examples. How does technology affect human
productivity?
WORKOUT
International Natural Resources (2 days) In teams of 2 complete this
assignment and then talk about what you discovered on the 3rd day
Philly Cheesesteak Sandwich Use both your learned and prior knowledge to complete this task.
UNIT 6 TEST
Glossary
advanced technology. Industrial and digital technologies.
capital. Any manufactured product used to make another product; includes machinery, buildings, vehicles, and computers; also can refer to the money used to buy capital.
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Glossary
capital goods. Manufactured products used to make final products.
economic inputs. Resources used to make products.
economic outputs. Products (goods, services, and ideas) produced by an economic system.
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Glossary
economic system. The system that a nation has developed to turn its resources into products that satisfy needs.
entrepreneurship. The willingness and ability to start a new business.
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Glossary
final product. Consumer product, that is, a product purchased by consumers.
infrastructure. The transportation systems and utilities necessary for a modern economy.
labor. Workers; the people who turn resources into products; also called human resources.
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Glossary
land. All the natural resources that a nation has.
natural resources. Raw materials; examples include soil, water, minerals, plants, animals, and climate.
opportunity cost. Value of the opportunity you did not choose.
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