Intro to Business Unit 1 CH 2


Economic Resources and Systems

Introduction to Business

Unit 1, Chapter 2

Unit 1, Chapter 2

• Learning Targets

Define scarcity.

List four factors of production.

Identify the differences between market and command economies

Explain why most countries prefer a mixed economy.


Understanding economic resources and systems is essential to lessening economic problems.

What is Economics

• Study of how society chooses to use resources to produce and distribute goods and services for people’s consumption

Unit 1 CH 2 Academic Vocabulary

To meet needs and wants, society must produce goods and services

Factors of production

The means to produce goods and services i.e. grow wheat, build tractors to harvest wheat • Scarcity – shortage of resources i.e. country may not have enough doctors

Unit 1 CH 2 Academic Vocabulary

Natural Resources raw materials

– Renewable-can be reproduced i.e. wheat and cattle

– Non-renewable – limited or unable to be renewed i.e. coal, iron, oil

• Human Resources

Knowledge, efforts and skills people bring to work

• Capital Resources

Used to produce goods and services i.e. building materials, equipment

• Entrepreneurial


People who recognize need for new goods and services i.e. Apple IPAD

Making Decisions about Production

-What should be produced?

-How should it be produced?

-Who should share in what is produced?

Text to world connection

Find an article from The

New York Times about a product or service.

Copy and paste article into notes. Write a paragraph answering the following.

Identify what types of resources are required to produce product/service. Explain availability or scarcity of product/service.

Types of Economic Systems

• Market Economy

Economic decisions are made in the marketplace according to the laws of supply and demand i.e. USA

• Command Economy

Planned or managed economy in which a central authority (usually the government makes the key economic decisions i.e. communism

• Mixed Economy

State takes care of people’s needs while the marketplace takes care of people’s wants i.e. socialism

Academic Vocabulary

Demand- amount of quantity of goods and services that consumers are willing to buy at various prices

Supply- amount of goods or services the producers will provide at vaiours prices

Equilibrium Price – price at which the amount supplied and the amount demanded meet

Unit 1 CH 2 Assessment

• Pg 31 Complete

– Review what you learned #14-22

– Understanding business concepts #23-30

– Critical thinking #31-32

– Examining the Image

• Pg 32-33

– Linking school to work

– Speculating on shortage