TEKS 113.31(d)(1), Social Studies (Economics)

Category: TEKS Economics Date: November 29, 2024

Subject: Economics – High School
TEKS 113.31(d)(1)

Summary of TEKS 113.31(d)(1)

TEKS 113.31(d)(1) helps students understand the basics of economics. Scarcity and opportunity cost affect every decision we make, from personal choices to national policies. By learning how societies answer economic questions and use resources, students gain insight into how economies work and why trade-offs are necessary.

Key Concepts of TEKS 113.31(d)(1)

  1. Scarcity: Resources are limited, so we must make choices.
  2. Opportunity Cost: Every choice means giving up something else.
  3. Economic Questions: Societies decide what to produce, how to produce it, and for whom.
  4. Factors of Production: Land, labor, capital, and entrepreneurship work together to create goods.
  5. Production-Possibilities Curve: This tool shows how scarcity and opportunity cost shape decisions.

Section 1: Why Are Scarcity and Choice Basic Economic Problems?

TEKS 113.31(d)(1)(A)
Explanation: Scarcity happens because resources like money, food, and materials are limited, but people’s needs and wants are unlimited. Since we can’t have everything, we must make choices. This is a problem every society faces. For example, if a city only has enough land to build either a park or a shopping mall, leaders must choose one. They can’t build both.

Key Idea: Scarcity forces us to decide what is most important. Every choice we make means giving up something else. This is why scarcity and choice are at the heart of economics.

Section 2: How Do Societies Answer Economic Questions?

TEKS 113.31(d)(1)(B)
Explanation: To solve scarcity, societies answer three basic economic questions:

  1. What to produce? Should the focus be on making food, clothes, or cars?
  2. How to produce? Should workers or machines make these items?
  3. For whom to produce? Who will use the products? Will everyone get some, or only those who can afford it?

Example of TEKS 113.31(d)(1)(B): A farming community might decide to grow food (what), use tractors to plant and harvest (how), and sell the crops to local families (for whom). By answering these questions, societies can organize their resources and meet people’s needs.

Section 3: What Are the Factors of Production?

TEKS 113.31(d)(1)(C)
Explanation: Everything we produce uses four main factors of production:

  1. Land: Natural resources like water, soil, and trees.
  2. Labor: The effort people put into work, like teachers, farmers, and builders.
  3. Capital: Tools, machines, and buildings used to create goods.
  4. Entrepreneurship: The ideas and leadership of business owners who take risks to create new products or services.

Example of TEKS 113.31(d)(1)(C): For instance, a pizza shop uses land (ingredients like wheat and water), labor (cooks and cashiers), capital (ovens and tables), and entrepreneurship (a person who starts the shop).

Key Idea: These factors work together to produce goods and services we use every day.

Section 4: What Is a Production-Possibilities Curve?

TEKS 113.31(d)(1)(D)
Explanation: A production-possibilities curve (PPC) shows how a society uses its limited resources. It helps us understand trade-offs and opportunity costs.

  • Trade-Offs: When we choose one thing, we give up another.
  • Opportunity Cost: The value of what you give up to make a choice.

Example of TEKS: 113.31(d)(1)(D): A factory can use its machines to make either 1,000 bikes or 500 cars. If the factory chooses to make bikes, it gives up the opportunity to make cars. The PPC shows this relationship and helps societies decide how to use their resources most effectively.

Key Idea: The PPC explains why societies must make smart decisions to balance scarcity and opportunity costs.