Upload
norman-eaton
View
214
Download
0
Embed Size (px)
Citation preview
J.R.R. TolkeinLord of the Rings
• “All we have to do is decide what to do with the time we are given.” Gandalf
• Pretty good definition
of economics too!
An Economic System…
• Organizes its resources to distribute goods and services to its citizens
• What are the economic resources?
Factors of Production
• C
• E
• L
• L
apital
ntrepreneurship
and
abor
Entrepreneurship
• Creative, risk-taking use of the factors of productions in order to…MAKE A PROFIT
Dave Thomas
Henry Ford
G.W. Carver
Sam Walton
Mattress Mac
Other Entrepreneurs
• Bette Nesmith Graham
• Famous son
Mistake out
Michael Nesmith / Monkees
Factors of Productioncategory = land, labor, capital good,entrepreneur, consumer good
• Resource• Pine tree• Teacher• Telephone• Chain saw• Lawn mower• Receptionist• Natural gas• Drayton McClane• Crude oil• farmer
• Category• Land • Labor• Capital & Consumer• Capital & Consumer• Capital & Consumer• Labor• Land• Labor and Entrepreneur• Land• Labor and Entrepreneur
Identify the trade-off and opportunity cost in the following.
• A nation can make either pizzas or robots. They pick pizzas. Trade-off?
• Robots • Opportunity Cost?• The value of the robots• Going to school versus a full-time job. Trade-
off?• Job. Opportunity cost?• The salary you aren’t going to receive
• Car companies retool to make more hybrids than SUVs.
• Trade-off? The SUVs. Opportunity Cost?• Loss of sales from the SUVs• Going to the movies or going to see grandma.
You pick the movies.• Trade-off?• Granny. Opportunity Cost?• The value of the time spent with grandma.
• To cheat on a test or to be honest. Pick—cheat. Trade-off?
• Honesty,integrity, reputation
• Opportunity cost?
• The value you attach to those things