jjohnson@jpsonline.

org

http://mr-johnson.us

In-Class notes, vocab, and discussion questions will be collected periodically to check for completeness and participation!

In-Class Notes - Chapter 1 - Basic Economic Concepts

! Economics:! ! ! ! Thinking Like an Economist: ! ! ! Scarcity: ! ! ! ! Wants:! ! ! ! ! ! ! Resources:! ! ! ! ! ! ! !

In other words! 1. WANTS and NEEDS:! !

Needs:!

Costs:

Goods:

Services:

2. RESOURCES, GOODS, SERVICES:! !

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3. COSTS

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Mr. Johnson
1/22/14

page 1

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What kind of cost Opportunity Cost!

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Trade-Off!

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Benefits:

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Utility:!

Incentives:

Who Does What?

CONSUMERS! PRODUCERS:

Basic Economic Questions: 1. ! ! 2. ! ! 3. !

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Mr. Johnson
1/22/14

page 2

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http://mr-johnson.us

Cost - Benefit Analysis:

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Factors of Production:! LAND LABOR!

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CAPITAL

ENTREPRENEURSHIP!

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Vocab you should know: Wants Services Cost-Benet Analysis Land! Needs Scarcity Consumers Labor Resources Utility! ! Producers Capital Entrepreneurship Goods Incentives

Mr. Johnson
1/22/14

page 3

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Questions for Discussion:! 1. What is the economic way of thinking?!

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2. How does scarcity affect consumers?" " " 3. How does scarcity affect producers?" " "

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4. What is the role of scarcity in each of the 3 economic questions?" a. What will be produced?" " b. How will it be produced?" " c. For whom will it be produced?" " " 5. What is the main difference between land, labor, and capital as factors of production?" "

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6. Why is entrepreneurship an absolutely essential factor of production" " Concepts for Review:! 1. Explain the relationship between the terms in each of these pairs?" a. Wants Scarcity" " b. Consumer Producer" " c. Wants/Needs Cost" " d. Trade-offs Opportunity Cost"
Mr. Johnson
1/22/14 page 4

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