1. © 2017 Junior Achievement USA® All rights reserved.
JA Academy
Resource Scarcity: The Foundation of Business
© 2017 Junior Achievement USA® All rights reserved.

2. I will describe the economic principle of scarcity.
explain how scarcity affects businesses.
identify three categories of resources that a business owner or manager must account for when planning business finances.

3. Scarcity and Business Choices
discuss
Scarcity and Business Choices

4. What is Scarcity? Scarcity means __________________.
you can get what you need A
wants and the resources to fill them are not equal
wants and the resources to fill them are equal
all resources are available to everyone B C D
you can get what you need A
wants and the resources to fill them are equal
all resources are available to everyone C D B
wants and the resources to fill them are not equal
Answer

5. What Are Resources? Land Labor Capital
Natural resources, like soil, minerals, timber, fresh water
Mental or physical effort from people to create goods and services
Buildings, tools, machines used to produce goods and services

6. A grocery store must decide whether to schedule stockers or baggers; they cannot afford both.
Labor
A restaurant has limited space and must decide whether to reduce dining area to expand the kitchen.
Land
A construction company must decide whether to buy new ladders or nail guns; they can’t afford both.
Capital

7. The Profit Equation
When total sales are more than total cost, you are making a profit. Figure out how much your profit is by subtracting cost from sales. =
Total Sales
Total Costs
Profit ?
Sell for highest price
Pay lowest price for resources

8. Time Estimate
0.50 hours
Burger Breakdown
Alt Text Graphic Description
Title:
Description: equation showing total sales minus total costs equals profit.
The Burger Stand charges $4.45 for a hamburger. After subtracting all the costs to provide each burger, how much profit do they make? = =
Total Sales
Total Costs
Profit
Burger Stand hamburger $4.45
Ingredients:
Rent & utilities:
Labor:
Advertising:
$1.50
$0.75
$0.43 ?
$0.27
Answer

9. Average Profits in U.S. 10% 8.3% 6.2% 5.8% 1.5% 1.3% Percent Profit
source:

10. Burger Breakdown Get together Design Production Time Estimate
00.00 hours
Alt Text Graphic Description
Title:
Description: icon of three human figures
Get together
Burger Breakdown

11. Determine costs for materials, labor, and equipment.
Decide how to allocate expenses to make a profit.

12. Wrap-up
Leave Room for Profit

13. Unlimited Wants & Needs Limited Resources
© 2017 Junior Achievement USA® All rights reserved.