Economics Summer School Day 1

Multiple Choice

Why do we need to make choices in Economics?

• resources are unlimited , but our wants are limited

• resources are limited , but our wants are unlimited

Multiple Choice

Which of the following items is a NEED?

Multiple Choice

_____ are something people must have to continue to live

• Wants

• Needs

Multiple Choice

_____ are something people would like to have.

• Wants

• Needs

Multiple Choice

Is the item a need or want?

• Want

• Need

Multiple Choice

Which of the following is NOT an example of scarcity?

• Only having enough money for one video game when you want two.

• Having unlimited air to breathe

• A small town having only one doctor

• not having enough time to do all your homework and play sports.

Open Ended

You have a free afternoon. You can either go to the park with friends, watch a movie, or read a book. You decide to go to the park. What is your opportunity cost?

​Recap

1. Economics is the study of how people and societies make choices when they can't have everything they want.

2. Scarcity occurs when there isn't enough of everything for everyone to have all they want.

3. Because of scarcity, every time you choose one thing, you give up something else.

4. Opportunity Cost is the value of the next best thing you gave up when you made a choice.

​Economic and Free goods

Economic goods - resources needed to produce them and limited in supply. Example : carpet
Free goods - no resources needed to product them. Example : Water in a river, Sunshine..

​ Factors of productions

1. land- natural resources used in production example : land, forests and minerals
2. labour- human effort
3. capital -tools machinery , equipment used in production
4. enterpreneurship- the ability to organize other three factors of production

Multiple Choice

Is the following a free or economic good?

Air

• Free good

• Economic good

Multiple Choice

Is the following a free or economic good?

Newspaper

• Free good

• Economic good

Multiple Choice

Is the following a free or economic good?

Air

• Free good

• Economic good