1. Write down 5 things you think are scarce in Louisiana.
SCARCITY
Write down 5 things you think are scarce in Louisiana.

2. Unit 2 Economics in Louisiana SCARCITY AND CHOICES

3. Resources
Natural Resources – a gift of nature, part of the natural environment. Examples – Water, Trees or Minerals.
Capital Resources – Money and products used to produce goods and services. Examples: Tools, Factories, and Machines.
Human Resources – People who produce the goods and services.
Discuss what happens after a big hurricane. Everyone needs to fix the damages on their homes. People begin to purchase items from the lumber yard. How does scarcity effect this situation.

4. Scarcity
Scarcity means that people want or need more than the available resources can supply.
The scarcity of resources means that choices must be made.
Discuss what happens after a big hurricane. Everyone needs to fix the damages on their homes. People begin to purchase items from the lumber yard. How does scarcity effect this situation.

5. Choices
Choosing how to use the resources is what an economic system is all about
Every choice is an opportunity or

6. Opportunity benefit 0pportunity cost
Opportunity benefit is the item purchased or chosen or the value of the item purchased or chosen when a choice is made
0pportunity cost
Opportunity cost is the item you did not choose or the value of the next best alternative given up when a choice is made

7. You go to the mall with $60. Make a choice on the items you will purchase. Now explain which item(s) are opportunity cost or opportunity benefit.
$40
$10
$20
$35
$15

8. Opportunity Cost or Benefit
The choice that you make is your opportunity benefit
Your second choice is your opportunity cost

9. Supply
Supply is the quantity of goods or services offered for sale.
Demand
Demand is the quantity of goods or services people are willing and able to buy.

10. What would happen if everyone in Lake Charles goes to McDonald’s on the same day at the same time and orders the exact same thing? What does this have to do with supply and demand?

11. Profit Profit is the amount left after costs are subtracted.
Price Item Sold for – Cost to Make Item = Profit

12. Building Skills by Making Decisions
#1 Identify the problem or choice to be made
#2 List the different alternatives
#3 Evaluate each alternative
#4 Choose one alternative
#5 Act on your decision
#6 Evaluate your decision

13. How can we make good ECONOMIC CHOICES?