Scarcity & Opportunity Cost

 Look at power point  Do centers  Work on scarcity/opportunity cost posters  Wrap up  E.Q. How does scarcity and opportunity cost affect people? Agenda

Scarcity : What do you think it means?

 Insufficiency of amount or supply  Example: If I bring fourteen cookies to class, not everyone will be able to get a cookie. The cookies are scarce. Scarcity is…

 A good is something that you can buy.  What are some examples of goods?  A service is the performance of any duties or work for another; helpful or professional activity.  What are some examples of a service? In economics, things that are scarce are called goods and services.

 When things are scarce, you are not able to get what you want. You have to make choices.  You may also have to save money for what you want. This is because when items are scarce, the price of them often rise. Scarcity cont.

What do you think opportunity costs are? When goods are scarce, people must incur opportunity costs.

 The highest-valued choice that is given up when a decision is made.  Example: I have a choice between getting an iPad and going to Spain. When I make my decision, I choose the iPad over the trip. Spain is my opportunity cost. Opportunity cost is …

 Center 1: Complete the worksheet  Center 2: Crossword Puzzle  Center 3: Musical Chairs Centers