Economic Resources

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Economic Resources
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Factors of Production

• Natural resources
• Labor
• Capital
• Entrepreneurs

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Factors of production Explain
Natural resources 1. 2.
Labor 1. 2. 3.
Capital 1. 2. 3.
Entrepreneur 1. 2. 3.
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Natural Resources

• Any gift of nature that makes production possible
• Examples fields, rain, forest, minerals, oil

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Labor

• Human resources
• Any way that people contribute to the production
  of goods
• Can be both physical and mental

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Capital

• 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

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Entrepreneurs

• People who start a new business, introduce new
  products, and improve management techniques
• People take risk to make money
• Driving force in the economy

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Gross Domestic Product

• GDP is the total dollar value of all final goods
  and services produced in a country in a year.
• 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.

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Bellwork

• Define Key Terms page 434

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Answer the following questions from 19-2

• 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?

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Bellwork

• Define key terms on page 438

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Consumer rights

• Congress has passed many laws that protect the
  rights of the consumer
• For example identifying the contents and the
  weight

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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

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Your Role as a Consumer

1. Uses of income
2. Decision making
3. What are your goals?
4. Saving for the future
5. Saving regularly
6. Decisions about your savings

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Uses of Income

• 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

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Decision Making

• 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

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What Are Your Goals

• 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

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Saving for the Future

• 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

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Saving Regularly

• 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

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Deciding About Your Savings

• 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
• 1. How much do I spend everyday?
• 2. Whats my reason for saving?
• 3. How fast will my savings grow?
• 4. How much will I make in the future?