TON DUC THANG UNIVERSITY

FACULTY OF FOREIGN LANGUAGES

DIVISION OF BUSINESS ENGLISH
UNIT 1
THE ECONOMY & YOU
CHAPTER 2
ECONOMIC RESOURCES & SYSTEMS

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 CONTENTS

Chapter Objectives

Section 2.1. Economic Resources

After completing section 1, students will be able to

+ Explain how scarcity requires individuals and nations to

make decisions about resources.

+ Describe the four factors of production.

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 CONTENTS

Chapter Objectives (cont.)

Section 2.2 Economic System

After completing this section, students will be able to
• Describe the three basic economic questions each country
must answer to make decisions about using its resources.
• Contrast the way a market economy and a command
economy answer the three economic questions.

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 SECTION 2.1
ECONOMIC RESOURCES
Before you read
 Think about the resources you use every day.
 Consider which resources are limited and which
are not.
 Describe the four factors of production

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 SECTION 2.1
ECONOMIC RESOURCES
Making Economic Decisions
 What is scarcity?

Factors of Production

 What factors involve in production?

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 SECTION 2.1
ECONOMIC RESOURCES

Natural Resources

 What are natural resources?

 What are renewable and nonrenewable
resources?
 How are renewable resources different from
nonrenewable resources?

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 SECTION 2.1
ECONOMIC RESOURCES

Labor Resources vs. Capital Resources

 What are labor resources?

 What are capital resources?
 How are labor resources different from
capital resources?

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 SECTION 2.1
ECONOMIC RESOURCES

Entrepreneurial Resources

 What are entrepreneurial resources?

 What is entrepreneurship?
 What is an entrepreneur?

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 SECTION 2.1
ECONOMIC RESOURCES
Review Key Concepts

1. Why do all nations face the problem of scarcity?

2. Identify one similarity and one difference
between labor and entrepreneurial resources.
3. List five different natural resources.

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 SECTION 2.2
ECONOMIC SYSTEMS
Before you read
Consider the way you make decisions about
how you will use your resources.

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 SECTION 2.2
ECONOMIC SYSTEMS
Basic Economic Questions
 What does the term economics refer to?
 What are the answers to the three basic
economic questions?
1. What should be produced?
2. How should it be produced?
3. Who should share in what is produced?

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 SECTION 2.2
ECONOMIC SYSTEMS
Different Types of Economies

 What are economic systems?

 What do the 2 basic types of economic
systems (market economy and a command
economy) involve?

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 SECTION 2.2
ECONOMIC SYSTEMS
Market Economies
 What is a market economy?
 What is the role of the individual within the
free enterprise system?
 How can Price, Supply, and Demand be
defined?
 What is the relationship Price, Supply, and
Demand?
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 SECTION 2.2
ECONOMIC SYSTEMS
Command Economies

 What is a command economy?

 What is the role of the individual within the
free enterprise system?

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 SECTION 2.2
ECONOMIC SYSTEMS
Mixed Economies

 What is a mixed economy?

 What is the role of the individual within the
free enterprise system?

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 SECTION 2.2
ECONOMIC SYSTEMS
Review Key Concepts
1. How does a market system decide what will be
produced?
2. In a market system, what determines how many
goods and services an individual can buy?
3. Some nations can produce more goods with
fewer workers than other countries that have
more workers. How can that be true?
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 CHAPTER 2
REVIEW AND ACTIVITIES
Summaries
1. Economic Resources
2. Economic Systems

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 CHAPTER 2
REVIEW AND ACTIVITIES
Key Terms
scarcity factors of production
natural resources labor resources
capital resources entrepreneurial resources
entrepreneurship entrepreneur
economics economic systems
market economy price supply
demand equilibrium price
command economy mixed economy
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 CHAPTER 2
REVIEW AND ACTIVITIES
Review Key Concepts
1. Explain how scarcity requires individuals and nations to
make decisions about resources.
2. Describe the four factors of production.
3. Describe the three basic economic questions that each
country must answer to make decisions about using
their resources.
4. Contrast how a market economy and a command
economy answer the three economic questions.
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 [2]: pp. 25 -46

[3]: pp. 27-35

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