QOD #3: Surgeon vs. Teacher

HW ReviewEconomics is EverywhereReview Factors of ProductionHW: Identify the parts

AGENDA Tues 1/17 & Wed 1/18

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: ProductTelephone

Good: ProductAmerican Flag

Good: ProductPicture Frame

FoP: LaborCommander in Chief

FoP: LandWool for curtains

FoP: CapitalTelephone

President Kennedy in the Oval Office working on

legislation.Opportunity cost: Camp

David w/ the kids