Understanding Economics SOL 3.7- 3.8 – 3.9. Cynthia O’Connor Amelia Elementary School. In the animal world PRODUCERS are Plants. Producers are the beginning of the food chain. Food Chain. eagle. Snake. Frog. grasshopper. What are the consumers?
Understanding Economics SOL 3.7- 3.8 – 3.9 Cynthia O’Connor Amelia Elementary School
Food Chain eagle Snake Frog grasshopper • What are the consumers? • What would happen if the food chain was broken? Clover
Plants are PRODUCERS because they make their own food from air, water, and sunlight.
BASIC NEEDS In nature animals have basic needs: • food • water • air • shelter Humans have basic needs: • food • water • air • shelter (clothing)
Humans have wants. I want a new car. I want a new ipod. I want a new basketball. I want my hair dyed purple. Wants are a desire fulfilled by the consumption of a good or service. WANTS
Economics People making choices everyday
Producers are people who make goods. People and regions often specialize in the production of certain goods and services. Human Resources are people making things.
Natural RESOURCES • Natural Resources are materials that come from nature. • Wood-to build houses and produce paper. • Coal-used to make steel, produce electricity and make plastics. • Water and soil-both needed to grow crops and make electricity.
Capital resources • Capital Resources are goods made by people and used to produce other goods and services. • Machines-things that do work: bulldozers, computers, cars and much more. • Tools-things to help you do a job: hammers, rakes, and more! • Buildings-places to work: fire houses, factories, stores, and more!
Name the Capital Resource. Name the Natural Resource. Virginia specializes in 2 resources.
Specializationencourages trade because people want goods and services that they do not have.
Virginia trades with other countries. Virginia trades coal for what Natural Resource? If you guessed oilyou are correct!
This manspecializes in producing (making) the shoes (goods). • We are the consumers. • We will buy the shoes.
This woman specializes in producing (baking) bread and cakes (bakery goods). • We are the consumers. • We will buy and eat the bread.
This man specializes in producing (making) automobiles ( goods). • Our parents are consumers. • They will buy the car because it is a good that they want.
This lawyer provides a service. • She is protecting her client’s rights. • Life, liberty and the pursuit of happiness.
This woman is providing a service. • She is a cashier at Wal-Mart.
The choice of, or decision among, alternatives or possibilities. Economic choices
Economic Choices • People make choices because they cannot have everything they want. • All choices require giving something up.
Economic Choices • Some items cost a lot. Some items are better for you. • You have to make an economic choice.
Economic Choices • Sometimes it is not easy, since many choices require giving something else up! • You have to compare the two. Should you save your money or buy the blocks?
Opportunity cost • If you choose to save your money, you will lose the opportunity to build cool things with the blocks. The blocks are the: A choice you have given up. pportunity cost
Making Choices review: The choice given up is the Opportunity cost.
Scarcity means you are not able to meet all the wants at the same time. You have a shortage. Example: There are (3) children and only (2) cookies. Scarcity
This ancient civilization specialized in building ships. What Ancient country is this? Review #1
Ancient Greece What resources were used to build the Greek ship and the Parthenon?
What type of resource uses buildings, vehicles, and tools to produce goods? Review #2
Name some Natural Resources. Review # 3
Wood, air, water, soil, sun, plants, oil, coal and minerals.
Review # 4 Is the beautician: a consumer a producer providing a service What is the customer?
The beautician is providing a service. The customer is consuming the service. Is getting her hair done a want or a need?
If buying the ipod means you can’t go to the basketball game, giving up the basketball game tickets is called: A. a service B. a bank account C. an opportunity cost D. a natural resource Review # 5 An opportunity cost
Our resources, goods, services, wants and needs are all part of economics. • All choices require giving something up. We make choices because we cannot have everything we want. This is Economics