Warm-Up If you could have anything in the world, what 10 things would you choose? Make a list on a scratch sheet of paper. Your only restriction is that it must be things that actually exist (no unicorns, fairies, goblins, etc.). New TOC Entry Scarcity 3/5/15 pg. 124-126 (back of page from yesterday for notes)

SWBAT define scarcity SWBAT explain how scarcity affects our ability to get things that we want

Announcements Turn in your Arab Spring notes and reflection questions!!!

Scarcity Why can’t we have everything that we want? We have unlimited wants… Wants = things that we desire to have

…but we have limited resources Resources = the things needed to produce the products that we want Choose an object from around the room and discuss with a partner – what resources went into making that product?

The problem = Scarcity There are not enough resources out there for everyone to have everything that they want. Scarcity = the condition that exists when unlimited wants meets limited resources

Why is it so hard to get into some colleges? Why are Bugattis so expensive? Why does the world have so much crime? Why do I have to interview for jobs? Why are some people in the world starving? Why are some paintings worth more than others?

How do we decide who gets what? We need a rationing device A way to decide who gets what portion of the goods available Money is the most common rationing device in our society.

Economic facts of life Scarcity – combination of unlimited wants and limited resources Scarcity creates the need for a rationing device People compete for the rationing device

Independent Work Scarcity and Opportunity Cost (review from yesterday!) It should say “A Nurses’s Care” in the box.