QOD #4: Surgeon vs. Teacher HW Review (Pg 13 #1-7, pg 20 #1-6 & pg 31 #3)

Economics is Everywhere Review Factors of Production HW: Identify the parts

AGENDA Wed 1/11 & Thurs 1/12

If you were a highly skilled trauma surgeon and your brother/sister were a high school teacher, which of you would incur the larger opportunity cost of being drafted into the military? Why?

Which would be the military’s larger opportunity cost? Why?

Which would be society’s larger opportunity cost? Why?

You will be examining photographs to identify examples of economic concepts.

We will do one together. Round 1 you look for three goods & services Round 2 you look for three factors of production You will be awarded points based on the items you

identify that no other partnership identified. Round 3 will not apply to all of the photographs.

•Round 1 you look for 3 goods & services •Round 2 you look for 3 factors of production

Look at each of the 8 photographs and identify three goods and services for each.

You have 1 minute to look at each picture. Next, we will read off those items identified and

you will cross it off your list if it is a match. All items left on your list are worth 1 point.

Identify three factors of production. For each items you identify as a factor of

production, you must also accurately categorize it. You have 2 minutes for each picture this round. Next, we will read off those items identified and

you will cross it off your list if it is a match. All items left on your list are worth 2 points.

Using the decision matrix below, identify which photographs best illustrate the three decisions on the matrix.

You must be able to justify your choice using economic reasoning.

Decision Cost (in money) Cost (in time) Main benefit

A $10 2 hours I will have fun.

B Free 1.5 hours I will learn something useful.

C $1 (gas money) 4 hours I will earn $32.

1.Land- natural resources

2.Labor- physical & mental talents that contribute to the production of goods & services

3.Capital- produced goods used as resources for further production..i.e. tools, computers, machinery

4. Entrepreneurship – special talent for taking advantage of new business opportunities

RENT – for land

WAGES – for labor

INTEREST – for capital

PROFIT – entrepreneurship

missing? borrowed money for investment – payment = INTEREST

A person must pay to use a resource:

Land = Rent

Labor = Wages

Capital = Interest

Entrepreneurship = Profit

Find a photograph of someone that shows examples of goods and services and factors of production. Identify three to five goods or services in the photograph. Draw a line from each one to a caption that tells why it is a

good or a service. Identify two or three factors of production in the

photograph. Draw a line from each one to a caption that tells how it is an

example of land, labor, or capital. Finally, describe where the person is and why you think

he/she is there. Then identify the opportunity cost for being there.

Good: Product

Telephone

Good: Product

American Flag

Good: Product

Picture Frame

FoP: Labor

Commander in Chief

FoP: Land

Wool for curtains

FoP: Capital

Telephone

President Kennedy in the

Oval Office working on

legislation.

Opportunity cost: Camp

David w/ the kids