Our Economic Choices
Choices Consumers Make
• 2 major groups: Producers & Consumers
• All producers use Factors of Production:
– Land
– Capital
– Labor
– Entrepreneurs
Land
• Gifts of nature, or natural resources not
created by people.
• Finite amount available at any given
time.
• World events affect availability & price.
Capital
• Tools, equipment, machinery, and factories
used in the production of goods & services.
• Unique because they are the result of
production.
Labor
• People with all their efforts, abilities, and skill.
• Includes all people except entrepreneurs.
• Quantity & quality affected by birthrate,
immigration, famine, war, & disease.
Entrepreneurs
• Risk takers in search of profits who do
something new with existing resources.
• Driving force in economy – Start new
businesses and introduce new products.
Production Possibilities
• Production Possibilities
Curve – Diagram
representing all possible
combinations of goods
&/or services an
economy can produce
when all productive
resources are fully
employed.
Fully Employed Resources
• Points located on the
curve represent
maximum combinations
of output with all
resources being used.
Opportunity Cost
• Value of next best
alternative given up.
• Cannot always be
measured in monetary
terms.
Opportunity Cost of Idle Resources
• If some resources are
not being used it is
impossible to reach
maximum output.
Trade-Offs
• Alternative choices given up in favor of the choice we select.
• Making best decision requires a plan.
Require More Last a Long
Money
Time
Used
Motorcycle
Go to Prom
Spring Break
Trip
New
Computer
Impress Your
Friends
Requires
Parental
Approval
Used Multiple
Times
Opportunity Cost for Consumers
• Previous table shows opportunity cost of
buying one of the goods.
• Trade-offs are all the other options that were
not chosen.
Consumer Rights
1.
2.
3.
4.
5.
Right to Safety
Right to be Informed
Right to Choose
Right to be Heard
Right to Redress
Consumer Responsibilities
1. Include important details & copies of receipts,
guarantees, & contracts to support your case.
2. Report the problem immediately. Don’t try to fix
a product yourself, it may void the warranty.
3. If you contact the manufacturer type a letter or
send an e-mail directly. Keep a copy.
4. Keep cool. Person you’re talking to probably
isn’t responsible for causing the problem.
5. Keep accurate record of your efforts to get the
problem solved.
Quick Write
• Write 1 paragraph explaining how scarcity
effects Deer Park High School.