1. What is ECONOMICS
all about?

3. Scarcity
vs.
Non-Satiation

4. Scarcity:
RESOURCES ARE LIMITED!

5. SHORTAGE VS. SCARCITY
A shortage occurs when producers will not or cannot offer goods or services at the current price.
Scarcity always exists because our needs and wants are always greater than our resource supply.
*Goods and resources are scarce because they are made from resources that are scarce.
*Holiday Season
*Big Sales
*Natural Disasters
*Y2K

6. Non-Satiation:
WANTS ARE UNLIMITED!

7. The Pig Principle:
“Generally speaking, people prefer n + 1 units to n units of the same good.”
What does this mean?

9. Economics focuses on CHOICES!
It is the study of how people choose to use scarce resources to satisfy their wants.
Video

10. Scarcity, Choices and Exchange
Video Link – scarcity, choices, etc.