Lesson 2 - Section 1

• Economie
• Middelbare school
• vwo
• Leerjaar 2

The basics of production

Learning objectives

• You can explain that it is risky to start a business.
• You can name and explain the production factors.
• You know the difference between good and services
• You know the difference between free goods and scarce goods.

Initial assignment

Question 1 until 4

You don’t get something for nothing

• Read the information on page ...
• Finish question 1a and 1b
  

• 1a: If the business goes bad private assets can be confiscated from your parents.
  
• 1b: Keeping thebooks is not dead easy. You need to do a lot of things and have some money to get started.
  

Production factors

"The means needed to produce goods ans services."

• Nature (natuur)
• Examples: Rain, water and land
• Labour (arbeid)
• Examples: Workforce or employees
• Capital (kapitaal)
• Examples: Machinery and tools (capital goods)
• Entrepreneurship (ondernemerschap)
• Examples: Combining production factors

A factory is build on a piece of land. Which production factor is used here?

Production factors

• Read the information on page 7
• Finish question 2 and 3

• 1: C
• 2: Capital(goods), Entrepreneurship, Labour, Capital(goods) and        Nature

Scarce and free goods

• Goods (goederen) are tangible.
• Services (diensten) are intangible.
• To produce goods and services production factors are used. therefore most goods and services are scarce.

• Scarcity forces us to make choices.
• Free goods don’t need production factors when produced.
  

Goods & Services

• Read the information on page 8
• Finish question 4 until 8

• 4a:  Service   b:  Service   c: Goods  d:  Goods  e:  Service  f:  Goods
• 5: The food is tangible and is a good. The
  dinner service is intangible so a service.
  
• 6a: There are no production factors used to produce the air we breathe.
• 6b:  Beach, sea and sun.
• 6c: The nature uses trees to create clean
  air.
  
  
  

Goods & Services

• 7:  If there is a lot of wind the wind turbines create a lot of energy which needs to be uses right away.

8:  To produce goods you need production factors. Nothing is free.

Homework

Read the theory on page 9 and 10

Make exercise 9 - 14