Scenario 1 Mr Mc Caw went to Walmart

Scenario 1: Mr. Mc. Caw went to Walmart to buy more fresh fruits and veggies because he was out of food. While in Walmart, he saw that his FAVORITE cookies, jumbo chocolate chip, were on sale for $. 99 each. He left with 10 jumbo chocolate chip cookies and no fruits and veggies. Name and define the economic ideas at work in this story, and give the example of each from the story.

Scenario 2: Ms. Wyche went to the doctor to get a flu shot. She paid her co-pay at the doctor’s office after being helped. After that visit, she stopped at the market to buy groceries, and then went to Subway to get dinner. What in this scenario is an example of a good? How about services? In your answer, please define goods and services.

Scenario 3: Callie buys gas to drive to New York to meet up with her friend Katy buys her a diamond ring as a birthday present (she’s rich). When Callie drives back down to North Carolina, she must stop driving for a while because of a tornado warning in the area. What are some examples of scarce resources from above? What about rare resources? In your answer, please define scarce and rare to show the difference between the terms.

Scenario 4: Ms. Staggers has to pay her student loans at the end of the month, but she REALLY wants to buy the new i. Pad before the end of the week with her tax returns. Name and define the economic ideas at work in this story, and give the example of each from the story.

Scenario 5: In order to make some extra money, Ms. Light starts to bake cheesecakes on Saturdays to sell to her neighbors. That means, that she must go to Food Lion after schools on Fridays to get supplies like sugar, cream cheese, and butter. When is Ms. Light being a producer? When is Ms. Light being a consumer? How is baking cheesecakes an example of providing her neighbors with a good AND a service?

4 Factors of Production

Word Bank: Good, Consumers, Scarcity, Limited, Wants, Producers, Unlimited, Service, Needs DO NOW: WEEK 14 One of the biggest economic problems is that we live in a world of ______ resources but _______ wants. This problem is known as ________, meaning there is never enough of a good or service to satisfy everyone’s desires. This affects the _______ who make the goods and the ______ who buy and use the goods. Because of this problem, people are forced to prioritize their ______ and ______. They need to decide which things they cannot live without and which things they’d simply like to have.

Word Bank: Good, Consumers, Scarcity, Limited, Wants, Producers, Unlimited, Service, Needs DO NOW: WEEK 14 One of the biggest economic problems is that we live in a world of ___limited___resources but ____unlimited____ wants. This problem is known as ____scarcity______, meaning there is never enough of a good or service to satisfy everyone’s desires. This affects the __producers____ who make the goods and the ___consumers_____ who buy and use the goods. Because of this problem, people are forced to prioritize their ___wants____ and ____needs____. They need to decide which things they cannot live without and which things they’d simply like to have.

1. REVIEW: What does it mean to produce something?

I. 4 Factors of Production a. Production=creation of goods and services b. Factors of production=things that go into making something Ex: to make desk, we need: 1. Tools, wood, metal 2. A machine 3. A worker for the machine 4. A factory 5. A desk design idea -4 Factors of Production 1. Land 2. Labor 3. Capital 4. Entrepreneurs 2. Brainstorm: What does it take to make a cake?

1. Land -Natural (raw, not man-made) resources -Can be either: Renewable=can be replaced pretty quickly Ex: trees, oxygen, water Nonrenewable=can’t be replaced pretty quickly over time Ex: gold, oil, coal, and gas

Renewable or Nonrenewable Item R or N Item Water Trees Plastic (oil) Potatoes Gasoline Diamond Coal Chocolate R or N

2. Labor (workers) -WORKERS=the human resources or human CAPITAL -Includes physical and mental abilities of a worker to produce something -Population growth, education, training, and war affect the quantity and quality of labor

How would these things affect the quality and quantity of labor? ? THINK!! Population growth= Education= Worker training=

3. Capital -Man-made things, like tools, machines, buildings, and money used to make other goods -capital goods=INDIRECTLY satisfy a consumer’s need/want -Example: Money -consumer goods=DIRECTLY satisfy a consumer’s need/want -Example: Tools that directly create something

5. What are some examples of capital that you can think of to make a cell phone?

4. Entrepreneurs -people who start new Entrepreneurs businesses, come up with new products, or improve technology -they are the BRAINS of the economy because they create jobs for workers and improve our lives

7. What does it mean that entrepreneurs are brains of the economy? Do you agree? Do you think entrepreneurs are safe or risky? Why?

8. How do we remember the 4 factors of production? 1. Land 2. Labor 3. Capital 4. Entrepreneurs

II. Production and Efficiency Productivity=how much a business produces of each good or service PER worker (quantity) Efficiency=how quickly a business can produce something PER worker (quality)

9. Productivity or Efficiency (P or E)? _____ How much made _____ Time spent _____ Want this to be HIGH _____ How fast made _____ Quantity (Amount) ______ Want this to be Quick

Examples of Each Productivity Example: Cookout makes 100 milkshakes in 1 day when 10 workers are working. What was their productivity? Find total number of Cookout Milkshakes/Workers 100 milkshakes/10 workers= 10 milkshakes person (100/10)

10. Productivity Comparison: How many hamburgers can each worker at Mc. Donalds NOTES 78 produce? Total hamburgers / number of workers = Productivity 10/1 A) 100 hamburgers / 10 workers = ______ 20/1 B) 100 hamburgers / 5 workers = _______ Which Mc. Donalds would you want to own, A or B? Why?

Examples of Each Efficiency Example=Cookout has 10 employees total (Person A, B, C, D, E, F, G, H, I, J). When Person A through Person E is working, they can make 20 milkshakes in 5 minutes (that’s 5 people). When Person F through Person J is working, they can make 20 milkshakes in 4 minutes (also 5 people). What group is more efficient? Why? 1 st group (Person A through Person E): 5 people Total Milkshakes made: 20 Time: 5 minutes 2 nd group (Person F through Person J): 5 people Total Milkshakes made: 20 Time: 4 minutes

11. Efficiency Comparison: Who is more efficient, worker A or worker B for each food item? Circle your answer. Hamburgers A) Makes 100 hamburger in 5 minutes B) Makes 100 hamburgers in 4 minutes French Fries A) Makes 10 large fries in 1 minute B) Makes 10 large fries in 45 seconds

Chicken Nuggets A) Makes 6 large chicken nuggets in 3 minutes B) Makes 6 large chicken nuggets in 6 minutes Mc-Rib A) Makes 10 Mc-Ribs in 5 minutes (2 per minute) B) Makes 12 Mc-Ribs in 3 minutes (4 per minute)

Which is a result of using factors of production in an efficient and cost effective manner? a. Investment b. labor c. productivity d. scarcity

Which explains the need to protect natural resources? a. Global warming is a direct result of using renewable energy. b. Focusing on renewable energy sources will help the environment. c. Nonrenewable energy sources can be sustained for thousands of years. d. New oil production facilities will increase our ability to transport people.

1.

1. Capital

2.

2. Land Is the renewable or nonrenewable?

3.

3. Capital

4.

4. Capital, Labor

5.

5. Capital

6. A) B)

6. A) Capital B) Land

7.

7. Entrepreneurship

8.

8. Land

9.

9. Capital

10.

10. Labor

11.

11. Land: renewable or nonrenewable? ?

12.

12. Entrepreneurship

13.

13. Land Renewable or nonrenewable?

14.

14. Capital