Understanding Basic Economic Concepts

What does scarcity mean?

• Scarcity means having enough resources for all wants.

• Scarcity refers to an abundance of resources.

• Scarcity is the ability to meet all demands without limitations.

• Scarcity means limited resources available to meet unlimited wants.

Why do we have to make choices?

• To follow what others want.

• To create confusion and uncertainty.

• To prioritize our needs and goals.

• To avoid making decisions altogether.

Can you name a want and a need?

• Want: smartphone, Need: food

• Want: video game, Need: clothing

• Want: vacation, Need: shelter

• Want: car, Need: water

What is the difference between wants and needs?

• Wants are always more important than needs.

• Wants are non-essential desires; needs are essential requirements for survival.

• Wants are essential for survival; needs are optional.

• Needs are things we can live without.

What is opportunity cost?

• Opportunity cost is the amount of money spent on a particular choice.

• Opportunity cost is the value of the next best alternative that is given up when making a choice.

• Opportunity cost is the total cost of all alternatives considered.

• Opportunity cost is the cost incurred from a financial investment.

If you choose to buy a toy, what might you give up?

• Time

• Energy

• Money

• Space

Why is it important to understand scarcity?

• Scarcity means there are unlimited resources available.

• It is important to understand scarcity to make informed decisions about resource allocation and prioritize needs.

• Understanding scarcity is irrelevant to economic growth.

• Scarcity is only a concern for wealthy nations.

How do choices affect our daily lives?

• Choices are irrelevant to our relationships.

• Choices significantly impact our daily lives by determining our actions, relationships, and opportunities.

• Choices have no impact on our daily lives.

• Choices only affect our financial status.

Can you think of a time you faced an opportunity cost?

• Buying a new phone instead of saving for a vacation.

• Attending my friend's wedding instead of going on a family trip.

• Choosing to stay home and watch TV instead of going to a concert.

• Eating out for dinner instead of cooking at home.

What happens when resources are limited?

• Resources are automatically replenished without effort.

• Everyone receives equal resources without conflict.

• Scarcity leads to competition and prioritization of needs.

• Resources become abundant and easily accessible.