Can you remember a time when you saved money to buy something expensive? Was the item a necessity or something that you simply wanted to own?

The Foundation of Economics

Terms One Scarcity Economics Needs Wants

Questions One : What is the difference between a need and a want? Why is scarcity a universal problem?

Questions Two How do the three questions help societies make choices about scarce resources? Why are societies faced with the three basic questions of WHAT, HOW, and FOR WHOM?

Terms -Two Factors of Productions Land Capital Labor Entrepreneurs

Questions - Three What four factors of production are necessary to bring clothing to consumers?

Terms- four Gross Domestic Products

Question - Four What would happen if one of the factors of production was missing?

Questions - Five Why is economics considered to be a social science? How can studying economics help us make better choices about how to use scarce resources? Do you pay to drink from the water fountains at school? Explain why the water is not really free by stating who actually pays for it How does scarcity affect your life? Provide several examples of items you had to do without because of limited resources, and explain how you adjusted to this situation.