Who Decides? Scarcity and Resource Allocation in Economics Ms. Helton 1/17/12 Global Issues

Bellwork What does the term scarce mean? Can you identify a scarce resource in your life?

Scarcity Limited resources versus limited wants All economies face the problem of human wants for goods and services is greater than what can be produced using all available resources Have to answer 3 questions (you’ve seen this before): What goods and services will be produced? How will goods and services be produced? For whom will these goods and services be produced?

Resource Allocation This information is always decided by a group of central planners- either govt officials or businesses/individuals What= deciding how much of each good and service will be produced How=production methods and what mix of resources will be used to produce different goods and services For whom=which households and individuals will receive goods and services to consume

Group Activity 1 In your group, look at Visual 2 Use info from your worksheet (either Activity 1 or Activity 2 depending on group) and determine how your economy will respond to what’s on Visual 2 Write down any changes in goods/services produced and how these teens will be prepared to enter the workforce of their country

Group Activity 2 You will need to split from your usual group-mixed members who just worked on either Activity 1 or Activity 2 Activity 1-Market Economy Activity 2- Command Economy Your new group has been given a newspaper headline –discuss resource allocation response from either a command, market, or mixed perspective Why is your solution the best one to the problem presented? Be prepared to discuss your answers with the class

Group Assessment/Exit Slip Do the task given on Activity 4 worksheet Write on your own paper; put all group names on the same sheet