WarmUp Ch'13 Section 1

1
Warm-Up Ch.13 Section 1

• What is it that you want right now? It can be any
  material possession in the world that is sold
  legally. Describe the process in which this
  material good is made from your knowledge and how
  it gets to the store?

• Now describe how your going to provide the
  resources to purchase or use this material good,
  if your using money or credit card how did you
  get the money, if you say parents, how did they
  get money?
• Describe the process of wanting to consumption as
  best you can.

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Chapter 13 Section 1

• Why Societies Have Economies

3
Peoples Many Wants

• Everybody has wants.
• The most basic wants are food, clothing and
  shelter. (The necessities to survival)
• People have an endless number of wants.
• (Health Care, Entertainment, Money)

• What your class wants?
• -New Jordans
• -
• -Clothes
• -Music
• -Drivers License
• -Car
• How long do this material things satisfy you?

4
Using Resources

• In order to satisfy the wants of the worlds
  population, companies must use resources to
  create this material goods.
• Factors of Production- the resources people have
  for producing goods and services to satisfy their
  wants.

• The three (3) basic factors of production are
  labor, land and capital.
• Labor is time and energy used to make the
  product.
• Land is the natural resources needed to make
  the product.
• Capital is anything produced in a economy that is
  used to produce other services or goods.
• (Buildings, tools, machines)

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Production to Consumption

• Production is when the resources of land, labor
  and capital are combined to produce what the
  people want.
• These resources (land, labor and capital) are
  called factors of production.

• Production Distribution Consumption
• Distribution is the process by which goods and
  services are available to the people who want
  them.
• Consumption is the act of buying or using goods
  or services.

6
Making Choices

• There are never enough resources to produce all
  the goods and services people want. Therefore
  people must decide what they want, these are
  called economic choices.

• What also influences economic choices are costs.
  The major cost of any decision is giving up the
  benefits you would have received from the
  alternative.
• Opportunity Cost is the highest valued benefit
  given up when the choice is made.

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Scarcity

• Scarcity is when resources are always limited
  compared with the number and variety of wants
  people have.
• Scarcity is a problem in both rich and poor
  societies.

• Scarcity is based on the relationship between
  wants and the resources available to satisfy
  them.
• Decisions about what to produce and consume are
  made by the government, individuals and
  businesses everyday.