Economics

When consumers make choices, they are limited by

• Time and money

• Resources

• Needs and wants

• Opportunity cost

Opportunity cost is the next best (a)   foregone

Write a short paragraph to explain the relationship between the scarcity, choice and opportunity cost

Scarcity is when there are not enough (a)   to satisfy our unlimited wants and needs

Moana is 20 years old and works part-time at a local coffee shop while studying a Bachelor of Arts. She currently earns $160 per week after tax. Moana is saving up her money to buy something for her student flat. She either wants to buy a heater or a dehumidifier.

Use the D-E-R method to fully explain the concepts of scarcity, choices, means and opportunity cost in relation to Moana.

Tick the resources below which are examples of capital:

• Machinery

• Field

• Screwdriver

• Lawyer

• Manager

Tick the resources below which are examples of natural resources:

• Machinery

• Field

• Screwdriver

• Lawyer

• Manager

Tick the resources below which are examples of enterprise:

• Machinery

• Field

• Screwdriver

• Lawyer

• Manager

(a)   -intensive production is when machinery is the most important resource used in the production process

Fully explain what type of resource a builder is. Use D-E-R to structure your response.