Introduction to Economics

1
Introduction to Economics

• Factors of Production

2
Web Lecture 7.1 Review

1. What is the study of how people make choices to
   satisfy their wants?
2. __________ are an hourly pay based on skills,
   experience and education, whereas __________ is a
   set payment that does not change based on hours
   worked.
3. What is one example of a want and one example of
   a need?
4. What are the four factors of production?

3
Warm Up- Brand Loyalty

• What is your favorite brand of apparel?
  (clothing, shoes, accessories, etc)
• What is it about this brand that makes you want
  to buy it? (quality, price, style, popularity,
  advertising, etc..)

4
Activity-Design a Clothing Business

• Over the course of this unit, you and a partner
  will be charged with the task of designing and
  maintaining a successful clothing business.
• Today you will
• choose your partner
• be assigned a category (shirts, pants, shoes,
  accessories) of clothing your company will design
  and manufacture
• choose a name
• decide what specific kind of clothing (mens or
  womens)
• create a bag, with your name and logo, that will
  hold all of the materials for your business.

5
What Is Economics?

• Economics is the study of how people make choices
  to satisfy their wants
• For example
• You must choose how to spend your time
• Businesses must choose how many people to hire

6
Wants and Needs

• Needs
• Something that is necessary for an individuals
  survival. E.g. air, food, shelter.
• Wants
• An item that we desire but is not essential to
  our survival.

7
The Factors of Production

• Land All natural resources that are used to
  produce goods and services.
• Renewable natural resources
• Nonrenewable natural resources
• Labor Any effort a person devotes to a task for
  which that person is paid.
• Capital Any human-made resource that is used to
  create other goods and services.
• Entrepreneurship the ability to pull together
  land, labor and capital to create and market new
  goods and services.

8
Wages and Salary

• Wages are the amount paid to laborers based on
  their skill level and education, as well as their
  experience.
• Jobs are often categorized into four skill
  levels
• Unskilled labor
• Semi-skilled labor hourly wage
• Skilled labor
• Professional labor Salaried workers

9
Warm Up- Survey of Products
Shirts Pants Shoes Accessories

10
Want Ad
11
Create an Entrepreneurial Plan

• In this plan you will address
• Land- what products and materials you will need
  and where you will produce/sell your goods.
• Labor- create a want ad for a sales manager
  (salary) and a sales position (wage) within your
  company.
• Entrepreneurship- what will you make and why?
• Capital- write a letter to a bank requesting
  money for a small business loan 500 for your
  business and explain why your business is a good
  investment.