Essentials of Economics - 2 PDF

Essentials of Economics - 2 Factors of Production and Economic Systems  Contents 1. Economic Resources 2. Interdependence 3. Economic Systems I will be successful when I can ………… List the different Economic Resources and how the apply to actual products Explain the concept of Inte...

Essentials of Economics - 2 Factors of Production and Economic Systems  Contents 1. Economic Resources 2. Interdependence 3. Economic Systems I will be successful when I can ………… List the different Economic Resources and how the apply to actual products Explain the concept of Interdependence and how it relates to the products I use everyday List the 3 Questions every Economic System should answer Success Criteria Economic resources, also known as factors of production, are the means through which goods and services are available to consumers. We can divided economic resources into three types: natural, human and capital Economic Resources Natural Resources are materials that come from the earth, water and air. Natural Resources Human resources (also known as labour) are the people who create goods and services. Examples include factory workers, construction workers, and farmers. Human Resources Capital resources are resources that last for a long period of time and are created by people. Examples include factories, office buildings, trucks, and equipment Capital Resources Think of a product like a chocolate bar, what are the economic resources required to make one? Natural? ◦ Cocoa plant Human? ◦ Cocoa farmers, factory workers Capital? ◦ Farms, factories Question We will be watching these videos together. While watching I want you to think about which Economic Resources go into the production of each good, and fill in the table as you watch. How it’s Made I will be successful when I can ………… List the different Economic Resources and how the apply to actual products Explain the concept of Interdependence and how it relates to the products I use everyday List the 3 Questions every Economic System should answer Success Criteria Our society and economy is interdependent. That means we depend on other businesses and other economies for survival, and vice-versa. Going back to the chocolate example, what other businesses are chocolate makers dependent on? Interdependence Chocolate companies are probably dependent on shipping companies to ship their goods to other countries. It may be dependent on advertising companies to help them promote their goods. Interdependence I will be successful when I can ………… List the different Economic Resources and how the apply to actual products Explain the concept of Interdependence and how it relates to the products I use everyday List the 3 Questions every Economic System should answer Success Criteria Every country has their own economic system. Members of an economic system (which would include individuals, businesses and the government) must answer three questions. 1. What goods and services should be produced within the system? 2. For whom should these goods and services be produced? 3. How should these goods and services be produced? Economic Systems What goods and services should be produced within the system? ◦ The lobster fisheries are highly regulated and controlled by the Canadian government. Fishing for lobsters is only allowed from April to June, and in December. Anyone wanting to catch lobsters must get a license from the government. Economic Systems - Example For whom should these goods and services be produced? ◦ Lobsters are sold to whomever can afford them. Most of them are exported. How should these goods and services be produced? ◦ Anyone with a licence can buy a boat, make traps and catch lobster. Economic Systems - Example 1. What is an economic system? What are the three basic questions that must be addressed when describing an economic system? 2. What kind of economic resources does Hong Kong have? Which economic resources does it not have much of? Questions I will be successful when I can ………… List the different Economic Resources and how the apply to actual products Explain the concept of Interdependence and how it relates to the products I use everyday List the 3 Questions every Economic System should answer Success Criteria