Economics

When consumers make choices, they are limited by

• Time and money

• Resources

• Needs and wants

• Opportunity cost

Opportunity cost is the next best ______________ foregone

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

Scarcity is when there are not enough ______________ 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

________________________-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.