Scarcity, Opportunity Cost, and Incentives

Define SCARCITY

Give two examples of SCARCITY. (Complete sentences)

Which of these is an example of SCARCITY?

• School

• Me giving everyone an A on the quiz.

• Homes and shelter for everyone in Los Angeles.

• Farms producing more than enough produce to feed everyone in the United States.

SCARCITY is not an issue for rich people.

• True

• False

Economics is

• the study of the stock market

• the ability to forecast what will happen in a market

• the study of people and choices

• the study of money

Define OPPORTUNITY COST

Create two scenarios that involve OPPORTUNITY COST.

You take a part time job working 20 hours a week. Which of these would be the OPPORTUNITY COST?

• The money from paychecks.

• You can buy a PS5 with the money you've earned.

• You're not giving anything up.

• Spending time with friends.

Define INCENTIVES

Give two example of INCENTIVES that you might receive at school. (Complete sentences)