Intro to Economics: Saving & Spending

What does scarcity mean in economics?

• The ability to buy everything without making choices

• Wanting more than you can have due to limited resources

• Having unlimited resources to fulfill all wants

• Earning money without working

Why do people have to make choices about spending their money?

• Because they don't really need anything

• Due to scarcity and limited resources

• People don't have to make choices; they can buy everything

• Because they have unlimited money

What is a benefit of saving money?

• You can buy something right away

• You have less money to use

• It leads to immediate gratification

• You might afford something more expensive later

What is a cost of spending money immediately?

• You have more money left for other things

• It increases your total wealth

• You can save it for something bigger

• You might not have much money left for other needs

If you had five dollars, what is one reason to save it rather than spend it right away?

• You could afford a cool new toy after a few weeks

• You prefer spending money as soon as you get it

• There are no benefits to saving money

• You can immediately buy an ice cream sundae