Limited Productive Resources and Unlimited Wants Preparing to Teach HS Economics 2014

Why are wants unlimited? The Pig Principle “Generally speaking, people prefer n+1 units of a good to n units of the same good.”

Why are goods limited? Most productive resources are limited Productive resources are – Land – Labor – Capital – Entrepreneurial ability

Fundamental Economic Problem Limited Productive Resources… … are Used to Produce Goods… …to Satisfy Society’s Unlimited Wants Allocation question How much of each good should be produced? Production question How should the goods be produced? Distribution question Who should get the stuff?

“Scarcity” Youtube