Using Resources (Economic Decisions)

KEY DEFINITIONS

Terms we need to know . . . to help our understanding of the important aspects of our topic

Key Terms of Economics

◦Economics◦Economic decisions◦Resources◦Natural resources◦Cultural resources◦Renewable resources◦Non-renewable resources◦Labour resources◦Capital resources◦Goods◦Services◦Economic activities

Economics is . . . how people and groups use limited resources to produce goods and services to satisfy their unlimited wants and needs

Economic decisions are the choices people make about how to use resources

Resources

Resources are things which people use to produce wealth.

When individuals talk about their resources they often mean their money, or any property which can be turned into money . . . but there are many types of resources

Natural Resources

Natural Resources come from nature.

Examples are land, minerals, oil, native forest, fish, scenery, sea, wildlife, rivers.

Cultural Resources

Cultural Resources are made by people.

Examples are people themselves and . . .

Renewable Resources

Renewable Resources can renew themselves, if they are managed well. i.e. rate of use is slower than rate of renewal

Examples are wind, wave energy, solar energy, exotic forests

Non-renewable resources

Non-renewable resources cannot be replaced once they have been used because they have taken millions of years to form i.e. rate of use is faster than rate of renewal

Examples are natural gas, coal, native forests

What is a natural resource?

What is a cultural resource?

What is a renewable resource?

What is a non-renewable resource?

A resource natural to the environment A resource specific to a cultural people A resource that grows back and can be used again. A resource that cannot be used again because the rate of

use is faster than rate of growth.

Labour resources

Labour resources are provided by people (human resources).

Examples are mental and physical skills - you use mental skills when you design a surfboard and you use physical skills when you make the surfboard.

Capital Resources

Capital Resources are products made by people which can be used again to produce other goods. (human-made resources)

Examples are machines, buildings and tools

KEY:NaturalRenewableLabour

CulturalNon-renewableCapital

Choose your own colours for your key

TASK: Identify different types of resources & colour them to match the key

Definitions Review

1. Is a pine forest a natural or cultural resource?2. Is a rimu forest renewable or non-renewable3. Is sunshine a renewable OR non-renewable resource?4. Is oil a renewable OR non-renewable resource?5. Is grass a renewable OR non-renewable resource?6. Are tractors and bulldozers a capital OR natural resource?7. Is a container load of butter a capital OR natural resource?8. What sort of resource is a school?9. What sort of resource is coal?10. What sort of resource is the Buller River?

Natural resourcesCultural resourcesRenewable resourcesNon-renewable resourcesLabour resourcesCapital resources

Goods

Goods are products or objects, especially ones which can be carried, felt or held.

Examples are playstations, ipods and pizza.

Services

Services are useful functions done by people.

They are not objects like goods so you can not feel or hold them. People usually pay for services.

Examples are a doctor, plumber

Checking our understanding

1. Give an example of a resource you have to pay for.

2. Give an example of a good you have to pay for.

3. Give an example of a service you have to pay for.

4. What type of resource is a flower in the garden?

5. What type of resource is a rubber tyre?

6. What type of resource is a cotton t-shirt?

7. What type of resource is a fish in the ocean?

8. What type of resource is water from a tap?

9. What type of resource is a rimu table?

10. Write your own question and answer it.

More Definitions Questions

NaturalCulturalRenewableNon-renewableLabourCapital

TREES

Thinking of examples helps our understanding ... 1. Draw your own diagram with these headings.2. Write examples of resources which people can use3. Put the instruction sheet in the recycling bin when finished

• pine trees for paper

Economic Activities

Economic Activities is about making, distributing and using resources, goods and services.

A person who uses resources, goods and services is called a consumer.

Economic activities explains why your sandwich costs $3, the clothes and shoes you want cost $120, and a movie can cost $60 million to make while you might earn $8 per hour for your after school job.