1.1: Scarcity and Choice

Chapter 1 Lesson 1: Scarcity and Choice
Assignment:

1. Begin Chapter 1: Section one and define the terms on the top of Page 3.
2. Explain what a "consumer" and a "producer" is in your own words.
3. Explain the difference between "scarcity" and "shortage" in your own words.
4. What are the "Factors of Production"?
5. Explain the difference between "Human Capital" and "Physical Capital".
6. Explain the difference between "Goods" and "Services"
7. Go to "Section 1 Assessment" (p.7) and answer question 9 and 10.
8. Next, begin thinking of a store or other shop you would like to open.  Start brainstorming ideas for your business.  It could sell t-shirts or organic groceries; you could open a restaurant or a gas station; it could be a car detailing shop, a motorcycle store, a shooting range, an upholstery shop, a hair salon, etc.  Come up with something that interests you and that you understand, because you'll be using "your business" throughout this section of Economics.

Homework:

1. Draw 4 "building shapes" (see below) on a paper and label it, "Land, Labor, & Capital",  The triangle is the business name (I am giving you two businesses to start with) and you will come up with two additional businesses, including the business you are brainstorming in #8 above.  Fill in possible Land, Labor, Physical Capital and Human Capital for each business.

Tomorrow: Be prepared to tell me what Scarcity and The Factors of Production are, and what they mean, and have your possible business ideas ready.