Introduction to Economics Scarcity

AIM: How can the people of the US confront the issue of scarcity? Objective: SWBAT analyze the concept of scarcity by assessing peoples’ wants and needs Do Now: How do we deal with not having enough stuff?

What is Economics? Def. The study of how people satisfy their needs and wants. We tend to use money to purchase our needs and wants. Bartering (trading one thing for another) and making things yourself are other methods.

What are NEEDS? Needs are the things that a person has to have to survive. Food Water Shelter

What are WANTS? Wants are those things that you would like, but do not need to survive. Examples?

Scarcity Def. A limited amount of resources to meet unlimited wants and needs. EVERYTHING is scarce!

Why do we have Scarcity? We have Unlimited Wants and Needs But Limited Resources Create Scarcity So we need to make Choices What to produce, How to Produce, For Whom to produce

Causes of Scarcity Personal Perspective: your own feelings of what is needed or wanted. “I’m starving!” “I’m broke!”

Causes of Scarcity 2. Poor Distribution of Resources: not using your resources to their potential. “I never have any time- yet I watch 6 hours of television a day!!” “I don’t have enough money for college, but I have to have a pair of $200 sneakers!”

Causes of Scarcity 3. Rapid Increase in Demand: A sudden rush to use resources can cause a shortage. Playstation 4 Iphone 7

What are some ways we can deal with scarcity??? 1. Doing without something: I’ll go to the prom, but not on the senior trip” 2. Creating more resources:“I’ll get a second job” 3. Making better use of our resources: “If we carpool to work, it’ll save gas money”