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Courtney waldrop

on 23 November 2011

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Transcript of Scarcity

When we think about the 3 basic questions of economics, it all comes down to one word-
Therefore, the choice you make is very important.
Not only do you have to make a choice, because of scarcity, but also, when you making a choice, you have to give up something.
Every person-child and adult, rich and poor, U.S. citizen and non U.S. citizen-has to deal with scarcity every minute of the day, because no one can have everything they want.
You cannot have all the time you want.
You can't have all the money you want.
You can't have all the toys/technology/cars/ boats/ houses, etc you want
Many people don't even have everything they NEED.
You cannot have of anything you want without having of something else you want. Remember, because of , we all have to make choices. No one, not even you, can have everything they want. Every time you make a choice, you have to give up something. Scarcity Not only do you have to make a choice because of scarcity, but the cost of making that choice means you give up the chance to get something else. This is called opportunity cost. Opportunity cost includes more than just It also includes the time, discomforts, and inconveniences linked to the choices made. money. For example, the opportunity cost of cleaning the house includes not only the price of the cleaning products, but also the time you spent cleaning instead of doing something else, like doing your homework or playing on the computer. All choices also have costs! What is something that you decided you wanted and bought with your own money?
What were the trade offs of your decision (what else could you have spent your money on?)
What were the Opportunity costs? So, if we could come up with three basic,
but essential statements about economics,
what would they be? 1. People tend to have unlimited wants with limited resources.
Here are three I came up with... Scarcity is a problem.
It's a math problem.
It's a social studies problem.
It is a problem. WORLD is the problem of having an unlimited amount of human , with a limited amount of wants resources. Scarcity! Scarcity: more less Think back to your Thanksgiving Feast... Did you want more stuffing?
Or maybe more rolls, or sweet potatoe casserole, or maybe that weird
casserole your grandma makes that is sooooo tasty... if you chose to eat
more of these things, you probably had to eat less dessert. Or maybe you
chose to eat less of the meal so that you could eat more dessert... No one can have everything they want.
We all have to give up something when we get something else. scarcity 2. There are always tradeoffs when making any choice. 3. All choices have opportunity costs.
Intro to Economics:
Scarcity, Opportunity Cost, and Trade-off Notes Remember all the way back to yesterday… I know it’s tough, that was a long time ago. Ya there yet?
Okay, well, remember we talked about how Economics is the science of decision making.
We talked about what kinds of decisions you have to make every day and what influences those decisions.
We also talked about value…
Remember now that Economics is the science of decision making...and we make decision based on what we value or think something is worth. Well, that is just the first part of it… Economics IS the
Science of Decision Making but we have to add to it a bit…
Economics is the study of how we make decisions
in a world where resources are limited.
Individuals use this Science of Decision making all the time! So do businesses and so do entire Countries/Societies.

When looking at Economics, it all comes down to 3 basic questions…

1.Society must decide WHAT to produce (make) with its limited resources.
society may have to choose whether to produce goods for defense or services for citizens
Businesses may have to choose to make SUVs or Hybrid cars
You have to choose what to produce when you get home... are you going to produce your English homework, or are you going to "produce" a new Facebook status update.
2.Society must decide HOW to produce.
Society decides if it makes more sense for the government to do something or if a business should do something.
Will the government make roads or should businesses make roads?
The boss of a company decides should I make this presentation or should I have my secretary make the presentation?
You decide how you are going to complete your summer reading. Do you read it all at the beginning of summer, skim the book right before school, read a few reviews on line? (yes, I know that many of you did that!)
3.Society must decide WHO will use or consume this product?
Who will receive the goods and services? The government decides if all people should receive the service of education or should people have to pay for it
A business might decide to start selling hampster clothing... they can certainly open a store selling hampster clothing, but WHO is going to use this product?
Let's say that you are making a video to put on YouTube. Who is your intended audience? Are you going to show this to your Granny? If so, the contents of the video might be different than if you decide you are only showing this to your friends... Who the consumer is greatly affects the product and the producers of the product. Needs are things we need for survival, such as food, clothing, and shelter.
Wants are things we would like to have.
List a few…
In addition to basic wants and needs, even if you could have more of some of the things you WANT... For example... back to your delicious Thanksgiving Feast.
Let's say you chose more dessert over more Turkey and fixins.
Instead, you ate an entire pumpkin pie- I'm talking the whole thing! First of all, it took you A LOT of time to eat the entire Pie! You could have spent that time...
watching football
talking politics with your grandpa
helping your mom with dishes!
Second, Eating the whole pie caused a lot of discomfort- perhaps another piece of turkey wouldn't have made you lie on the couch for 3 hours in a food induced coma... And last, making the choice to eat the whole pie caused you some serious inconveniences... like the three hours you spent projectile vomitting... Generally, there are lots of options out there when you are making your choices... The choices that you don't pick are called trade offs. Hold Up!
I'm still confused about Trade-offs and Opportunity Costs! Well, go to this website... this dude explains it better than me... http://www.reffonomics.com/TRB/chapter1/opportunitycost.swf

stop when he starts talking about the economics meal... In the example from the website, the trade off of going on the date is giving up the the chance to hang out with your friends.
The opportunity cost of going on the date could be the excitement and fun that you miss from hanging out with your friends, but it also includes the money you spend on your date… you could have spent that elsewhere.
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