Scarcity & Opportunity Cost May 9, 2019 American Government Scarcity & Opportunity Cost

WARM UP HSA Questions of the Day   1. What is scarcity? When there is a limited amount of a resource (time or money).

WARM UP HSA Questions of the Day   2. What is opportunity cost? What you give up when choosing between two things.

Vocabulary Review Term Definition Currency Allocate Market Coin or paper money Allocate To spend a specific amount of money on a specific thing Market The exchange of goods and services between people

Vocabulary Review Benefit Goods Services Term Definition When you get something positive out of a decision Goods Products you purchase (physically) Services Non-tangible things you purchase (not-physical)

Markets The exchange of goods or services between two or more people

Markets The exchange of goods or services between two or more people What is being exchanged?   Good or Service? Between whom?

Markets The exchange of goods or services between two or more people What is being exchanged?   Good or Service? Between whom? What is being exchanged?   Good or Service? Between whom?

Markets The exchange of goods or services between two or more people What is being exchanged?   Good or Service? Between whom? What is being exchanged?   Good or Service? Between whom?

Markets The exchange of goods or services between two or more people What is being exchanged?   Good or Service? Between whom? What is being exchanged?   Good or Service? Between whom?

Markets The exchange of goods or services between two or more people What is being exchanged?   Good or Service? Between whom? What is being exchanged?   Good or Service? Between whom?

Scarcity 1. Jordan just got paid from his job at McDonalds Scarcity 1. Jordan just got paid from his job at McDonalds. Look at this picture … what’s his problem?

What is the scarce resource for Jordan? Jordan has $500 to spend. Yet, he wants over $40,000 worth of goods. 2. He has a scarcity of…

Scarcity 3. What is the scarce resource in this scenario? Jim returns home from school at 5:00 pm. He has work at 7:30 pm. Before work he needs to complete his homework, do his laundry, clean his room and help his younger brother with his homework. The total time it will take to get all this done is 4 hours, but remember that Jimmy has work. 3. What is the scarce resource in this scenario?

Government Example Dillary Trumpton has just won the presidential election after promising the American people to both cut taxes and improve health care, streamline services for veterans, and increase Pell grants for college-going students. 4. What is scarce in this example?

Opportunity Cost What you give up when you choose something else Jordan had $500 and decided to get a new phone rather than a new outfit and sneakers. What is the opportunity cost? (What did he give up?)

Opportunity Cost Jimmy returns home from school at 5:00 pm. He has work at 7:30 pm. Before work he needs to complete his homework, do his laundry, clean his room and help his younger brother with his homework. He really wants to take a nap, but he decides to focus on his homework then help his brother. What is the opportunity cost?

AGREE OR DISAGREE & WHY? I would rather live in a old, dirty house with no car than have a beautiful new car and be homeless. Why?

If I find $10, I spend it without asking any questions. Why? AGREE OR DISAGREE & WHY? If I find $10, I spend it without asking any questions. Why?

I would spend $200 on a pair of shoes. Why? AGREE OR DISAGREE & WHY? I would spend $200 on a pair of shoes. Why?

It is more important to save money for college than buy clothes. Why? AGREE OR DISAGREE & WHY? It is more important to save money for college than buy clothes. Why?