Have out: Module 1 notes and worksheet Scarcity Have out: Module 1 notes and worksheet

Today’s objective After today’s lesson, students will be able to… Define scarcity and correctly identify examples and non-examples Essential Skill: Demonstrate understanding of concepts

But first…A review What is a trade off? Give an example of something in everyday life that when you choose it, you are giving something else up.

What is a tradeoff from this morning? Whenever scarcity of time or money forces you to make a choice, you face a tradeoff

Economics: What is it? How we attempt to fulfill unlimited wants with limited resources. Facts on Human existence We have unlimited wants There are only so many resources on earth Something that all human civilizations have in common

Scarcity Book definition: To be scarce an item must be: We desire more than we can have To be scarce an item must be: 1. Limited aka finite aka NOT INFINATE 2. DESIRED – PEOPLE MUST WANT IT *Must meet both criteria!!!*

Scarcity worksheet Find a partner Using our new definition try to identify which items are scarce and which are not Scarce Explain why

summary Scarcity does not equal rare Economists are interested in truly scarce resources, because that is when people have to make choices We make rational decisions; thinking about the impact of our choices

Dialysis worksheet Directions: Make 2 priority lists List 1: Who is getting hours on the machine in order of deserving List 2: Waiting list in priority order

Basic economic concepts People choose for good reasons People are rational and self-interested Try to maximize utility/benefit

Basic economic concepts Incentives matter People’s self-interest will override other factors

Basic economic concepts Everything has a cost You must give up something to get what you want. Nothing in life is free