1. Scarcity and Decision Making

2. Wants
Physical Wants – needs that are necessary to sustain life (e.g. food, clothing, shelter)
Psychological Wants – wants that are not essential to sustain life (e.g. gold jewelry)

3. SCARCITY
Humans have unlimited wants but limited resources. Therefore we must make choices.
Opportunity Cost-what you give up when you make a specific choice. (e.g. stay in school, the o.c. is a full time job)
For something to be scarce, demand for it must exist.
*Is salt water scarce in Saskatchewan? (in economic terms?)

4. MASLOW’S HIERARCHY of Needs
NAUGHTY!

5. Resources & Goods / Services
Human Resources – labour needed to produce goods and services (e.g. teacher) LABOUR
Capital Resources – non-human processed resources used to produce goods and services CAPITAL (FACTORIES, MACHINES)
Natural Resources – land and all unprocessed non-human resources used to produce goods and services LAND
Goods – concrete visible things that satisfy human wants and that last a period of time Services – invisible things that cannot touched or seen (e.g. concert)

6. ScarcityDecision Making Opportunity Cost
Human Wants > Resources = Scarcity
Decision Making – can’t have everything because of scarcity
Opportunity Cost – the decisions will mean we have to give up something to gain something else (e.g. Colin wants to go to NYC during the March Break or have a IPAD)

8. PRODUCTION POSSIBILITIES CURVE DISPLAYING OPPORTUNITY COST CONCEPT
GUNS
BUTTER

13. Summary Resources – Human / Capital / Natural
Wants > Resources = Scarcity
Scarcity  Decisions  Opportunity Cost
Opportunity Costs – Goods & Services

14. Youtube clips