1. THE BASIC ECONOMIC PROBLEM
SCARCITY
THE BASIC ECONOMIC PROBLEM

2. SCARCITY
the condition that occurs because peoples wants and needs are unlimited but all resources are limited.

3. The Condition of Scarcity
Something is scarce if it has more than one valuable use.
*Consider your time.
*When resources are used to do one thing, they are unavailable to do others.

5. IT IS A UNIVERSAL PROBLEM
WHY? ______________ * ALL people deal with this kind of problem every day. Its called scarcity. It comes from the word scarce, which means there isn't a lot of it or it isn't always available.

6. THE BASIC ECONOMIC PROBLEM
LIMITED RESOURCES
&
UNLIMITED WANTS & NEEDS
CREATES
SCARCITY

7. Simply put…
ECONOMICS = SCARCITY
&
SCARCITY =
WANTS> Resources

8. IF There is a limit to resources.
THEN Limited resources means that there is never enough resources to _______________________.

9. *
Why are things SCARCE?
Nature doesn’t provide enough of everything for everyone

10. What is NOT scarce?
*Economically speaking, it is quite difficult to think of things that are not scarce.  
maybe sand ? Saltwater ?
Air ? How about DUST????
Q-How would you know if a good was NOT scarce? A-It would be Free (OC=0)
* It is safe to say that in economics, most things in this world are considered scarce.

11. Q-What are LIMITED RESOURCES?
A- Factors of Production

12. Scarcity VS. Shortages
Shortages- occur when producers cannot offer goods at current prices
Demand > Supply
Temporary
choice made by man.
Scarcity- limited resources due to limits in “nature”
Condition
Always exists

13. * When companies have to compete for employees,
Labor Scarcity
* When companies have to compete for employees,
Q- Scarcity of labor can mean WAGES _________? A- increase

14. ALLOCATION
*Scarcity forces people to make decisions about how to use resources effectively.
People decide how to allocate, or distribute resources in order to satisfy as many wants & needs as possible.
Def. The process of choosing which needs will be satisfied & how much of our resources we will use to satisfy them.

15. Another Mr.D Production Coming Soon: Scarcity Quiz
THE END
Another Mr.D Production
Coming Soon: Scarcity Quiz