What Creates Scarcity?

Land What impacts might this decision about using the land have on the land? – If land is used for one purpose, it may not be available for another – Are the resources being used to provide the best return on investment – Is this application of the land/resource sustainable for the environment

Labour How do choices concerning jobs affect the workforce? – When there are plenty of jobs, workers can choose where they want to work – Employers may offer incentives to keep valuable workers, especially if markets are very active. They may also take measures to find work for those employees during downturns – Employees may choose to stay with an employer they like and trust rather than switch to another position

Labour cont. – If workers are mobile, they can choose jobs anywhere in Canada that offer the best opportunities for them – Workers may choose certain jobs and remain with a good employer, just to gain experience

Capital What if the capital that built this airplane plant were invested in something else? What impact might this have on airports and air services? – The airport may lose business – The airport may have to look elsewhere for customers, or even diversify and make the airport serve another business, such as a mall – Air services may be cut back, inconveniencing customers who want flights to destinations that are no longer serviced