Week 1 Day 1 Applied Economics Notes PDF

OPENING PRAYER CLEANLINESS SEATING ATTENDANCE ARRANGEMENT  APPLIED ECONOMICS  ABOUT Specialized subject 25-45-30 THE 25%- Written works 45%- PT’s SUBJECT 30%- Assessments  THINK WITH YOUR SEATMATE, THINK PAIR OF A WORD TH...

OPENING PRAYER CLEANLINESS SEATING ATTENDANCE ARRANGEMENT  APPLIED ECONOMICS  ABOUT Specialized subject 25-45-30 THE 25%- Written works 45%- PT’s SUBJECT 30%- Assessments  THINK WITH YOUR SEATMATE, THINK PAIR OF A WORD THAT YOU THINK IS SHARE! ASSOCIATED WITH “ECONOMICS” AND EXPLAIN WHY. Be ready to share.  I can define what is economics. I can explain what is LEARNING scarcity. TARGETS: I can distinguish the two types of scarcity. I can explain what is opportunity cost; and WHAT IS ECONOMICS? Is a social science that deals with the production, distribution and consumption of goods and services. WHAT IS ECONOMICS? Is a social science that involves the use of scarce resources to satisfy the unlimited wants. SCARCITY Is a condition where there are insufficient resources to satisfy all the needs and wants of a population. TWO TYPES OF SCARCITY RELATIVE ABSOLUTE There are sufficient It is a condition resources available where the supply is in the economy but limited. an individual cannot purchase that much amount because of limited money in hand. OPPORTUNITY COST Refers to the value of the 1 best forgone alternative. OPPORTUNITY COST It is the value of 2 something when a particular course of action is chosen. OPPORTUNITY COST The opportunity cost is 3 what you must forgo in order to get something. OPPORTUNITY COST EXAMPLE 1: Going to the movies If you spend time and money going to the movies, you can't spend that time at home reading a book. OPPORTUNITY COST EXAMPLE 2: Taking the train to work If you take the train to work instead of driving, you give up an hour each day that you could spend elsewhere. OPPORTUNITY COST EXAMPLE 3: If a student chooses to pursue a college degree, his/her opportunity cost is the potential income she could have earned during those four years of FIST TO FIVE! FOUR FACTORS OF PRODUCTION Factors of production are the resources used to produce goods and services. These resources are also called inputs. FOUR FACTORS OF PRODUCTION LAND LABOR CAPITAL ENTREPRENEURSHIP  LAND All the naturally occurring resources (gifts of nature). Land is also called natural resources. Natural resources have two fundamental characteristics: They are found in nature They can be used for the production of goods and services.  LABOR All human effort – whether mental or physical that contributes to production. Labor is also called human resources. The payment for labor is called wages. TYPES OF LABOR Unskilled Semi-skilled Skilled Professional TYPES OF LABOR Unskilled This type of labor involves simple tasks that don't require judgment. Unskilled labor is also known as blue-collar work. Examples of unskilled labor jobs include grocery clerks, maids, fast food workers, janitors, and parking TYPES OF LABOR Semi-skilled This type of labor requires some physical and mental work to carry out tasks. TYPES OF LABOR Skilled This type of labor involves education, experience, and advanced certifications to fulfill the job's task. TYPES OF LABOR Professional This type of labor involves specific expertise.  CAPITAL Capital as a factor of production includes money to acquire natural and human resources as well as all other assets which are employed in the process of production, such as the tools, equipment, buildings, and any improvement to existing structures or plant and machinery to be used to improve ENTREPRENEURSHIP An entrepreneur is someone who is willing to risk his or her time and money to start or run a business— usually with the hope of earning a profit in return. ENTREPRENEURSHIP Entrepreneurs have the ability to organize the other factors of production and transform them into a business. Without entrepreneurship many of the goods and services we consume today would not FIST TO FIVE! I WONDER WHY... I am confused about... I want to know why... PROGRESS I can define what is economics. CHECK! I can explain what is scarcity. I can distinguish the two types of scarcity. I can explain what is opportunity cost; and ACTIVITY 1: Give at least five (5) examples of opportunity cost. (1/4 sheet of paper) THANK YOU for your attention