Starter List three ways to be an economically

smart citizen.

Economic Resources

Students will learn about the four factors of production and the Gross Domestic Product.

Goods and Services

Goodstangible products

Serviceswork performed by someone else

Factors of ProductionNatural Resources Labor-industrial materials (as Nation’s workforce or

mineral deposits and human resourceswaterpower) supplied by Nature

Capital (capital goods) Entrepreneurs-tools, machinery, buildings individuals who start

newUsed to make other products businesses. They are

innovative and willing to take risks.

Gross Domestic Product (GDP) A measure of the size of the economy. It is the total value, in dollars, of all final

goods and services produced in a country during a single year.

Final goods are sold to their users GDP is expressed in terms of money. If the GDP is higher than the previous

year’s GDP then the economy is expanding. If lower, the economy is declining

Standard of Living The quality of life based on the possession

of necessities and luxuries that make life easier.

When the GDP grows faster than the population, there are more goods and services for citizens to enjoy

GDP nor Standard of Living does not measure society’s overall well-being or account for the improvement in product quality

Guided Practice: Factors of Production Use a sheet of paper

and draw the following diagram. Draw it large enough to cover the sheet of paper.

Label the circles -capital-land-labor-entrepreneurship

Directions: you own a restaurant. The list below is items needed to run you business. Place each item in the correct circle.

candles gas ½ acre of land

carpeting Delivery vans Menus

Cleaning fluids Parking lots Tablecloths

Paper products lamps Delivery person

cooks electricity Utensils

decorations Kitchen appliances Waiters

Awning Manager Host and hostess

Signs Salt and pepper shaker Fire and gas alarms

Fire extinguishers Owner Water

Cash register Pots and pans Cleaning equipment

Reception desk Cashier Window washer

Food Dishes Cleaning service

Furniture Rent & maintenance accountant

Individual Practice Divide the computer paper into four boxes Label each box with one of the four factors of

production You are planning to start a business. Chose the

type of business (not a restaurant) and give it a name. Place the name at the top of the paper or in the middle.

Draw examples of items needed for the business-capital- 5 examples-labor- 2 examples-land- 2 examples-entrepreneurship- 1 example