1. Introduction to Economics and Scarcity
By Ben Quick

2. What is Economics
$the study of how individuals and nations make choices about how to use scarce resources to fulfill their wants and needs.
$Keys to understanding Economics:
Know the meaning of choices(decisions), scarcity, and resource.

3. Choice
$ In Economics, Choices are the decisions we (people, business, governments) have to make concerning the resources we have.

4. Resources
$ Anything that people can use to make or obtain what they want.
$ Includes: money, skill, knowledge, time, etc..

5. Scarcity
$ The universal problem that faces all societies because there are not enough resources to produce everything we want and need.
$ Scarcity requires people to make choices about the goods and services they use
$ Unlimited want v/s Limited resources

6. Unlimited Wants
$ There are three reasons why wants and needs are virtually unlimited:
- Goods eventually wear out and need to be replaced
- New or improved products become available
- People get fed up with what they already own

7. Limited Resources $ All resources are limited. $ Examples: - Oil
- Time
_ Money
- Fresh water

8. Four Themes of Economics
Scarcity – Why can’t I have everything I want?
Profit Motive – What different incentives do you respond to?
Voluntary Exchange – Why should I trade?
Economic Interdependence – How do your choices affect others?

9. Allocation Strategies
Allocate means to distribute according to a plan
Lottery
First come
Seniority
Authority
Price
Contest
Force
Majority rule
Personal characteristics

10. Questions?