Alabama Social Studies SS24.E.1b
The Standard
- SS24.E.1
- Investigate and share information on how scarcity can impact factors of production and the decision-making of individuals, businesses, and governments.
Explain how land (natural resource), labor (human resource), capital (physical or human resource), and entrepreneurship function as factors of production.
2024 Alabama Course of Study: Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students identify the inputs used to make a product: natural resources, workers, equipment, skills, and business decisions. They explain what each contributes and how an entrepreneur brings them together.
What Mastery Looks Like
- Given a bakery, students identify wheat as a natural resource, a baker’s work as labor, and an oven and baking skills as capital. They explain how the owner makes decisions and takes risks, and why training differs from hours worked.
Common Misconceptions
- Students may call startup cash physical capital instead of naming tools or equipment. They may treat a worker’s skills as labor rather than human capital, or miss the owner’s decisions and risks.
How to Assess It
- Exit ticket: A bakery uses wheat, bakers, ovens, trained baking skills, and an owner who risks money to open the shop. Label each input and explain what it contributes.
Lesson moves
Ways to Teach It
Give pairs cards labeled wheat, water, baker, oven, baking skills, and owner risking money; have them sort and defend each choice.
Ask students to write: How does an oven differ from a baker’s training, and how can both increase bread output?
Play four corners with cards for kitchen water, cook, stove, and owner choosing the menu; students move to the matching input.
Show a coffee shop menu photo; students trace one latte to milk, barista work, an espresso machine, training, and the owner’s decision to sell it.
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Printable SS24.E.1b Worksheet

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Related Standards
- SS24.E.10a
Explain how the relationship between inputs and outputs is used to calculate productivity at various levels of the economy.
- SS24.E.1
Investigate and share information on how scarcity can impact factors of production and the decision-making of individuals, businesses, and governments.
- SS24.2.4
Explain the economic processes of production and distribution, including the roles of producers, consumers, goods, and services.
- SS24.HG.13
Explain how resource availability and cultural practices influence agricultural methods, crop selection, and land-use patterns.
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