Lesson 1 Intro to Economics and Scarcity

How do we define Economics?

• The study of how to make money

• The study of scarcity or how people satisfy needs and wants

• The Study of how to fulfill needs and wants with unlimited resources.

• The Study of the history of economic policies

In terms of Economics, what is a need?

• Something that you have to have to survive like food, water and shelter

• A luxury yacht

• Designer clothes

• A smartphone to make life easier

In terms of Economics what is a want?

• Something required to survive.

• Something that is nice to have like a car

• Something that you need to make money

• Something that you need to get a job

A limited amount of resources to meet an unlimited number of wants and needs causes...

• Supply

• Demand

• Scarcity

• Economic Equilibrium

Which is an example of a resource that are limited?

• Money, Land, Time, Workers,

• Ideas

Which is not one of the 3 questions of Economics?

• What to produce?

• Why to produce?

• For whom to produce?

• How to produce?

Causes of Scarcity: How does Personal Perspective causes scarcity?

• You own feelings of what is wanted and needed

• A poor distribution of resources

• A rapid increase in demand

• A rapid decrease in demand

How can a government cause scarcity?

• Personal perspective

• Poor collection of resources

• Poor distribution of resources

• Increase in demand

How can a rapid increase in demand cause scarcity?

• A sudden rush to use resources causes scarcity.

• A sudden rush of inflation causes scarcity.

• A sudden rush of money in to the economy causes scarcity.

• A sudden rush of new workers causes scarcity.

Imagine Adalia is trying to explain to Bella and Fernanda the concept of scarcity and shortages in the context of water usage in a desert town. How would Samuel describe the difference between scarcity and shortages?

• Scarcity is temporary and Shortages are permanent

• Scarcity is the same as a shortage

• Scarcity is permanent and shortages are temporary.

• Scarcity is causes by a sudden use of resources and is temporary.