View
220
Download
2
Category
Tags:
Preview:
Citation preview
Scarcity and Decision Scarcity and Decision MakingMaking
Wants
Physical Wants – needs that are necessary to sustain life (e.g. food, clothing, shelter)
Psychological Wants – wants that are not essential to sustain life (e.g. gold jewelry)
SCARCITY Humans have unlimited wants but limited
resources. Therefore we must make choices. Opportunity Cost-what you give up when you
make a specific choice. (e.g. stay in school, the o.c. is a full time job)
For something to be scarce, demand for it must exist.
*Is salt water scarce in Saskatchewan? (in economic terms?)
Resources & Goods / Services
Human Resources – labour needed to produce goods and services (e.g. teacher) LABOUR
Capital Resources – non-human processed resources used to produce goods and services CAPITAL (FACTORIES, MACHINES)
Natural Resources – land and all unprocessed non-human resources used to produce goods and services LAND
Goods – concrete visible things that satisfy human wants and that last a period of time Services – invisible things that cannot touched or seen (e.g. concert)
ScarcityDecision MakingOpportunity Cost
Human Wants > Resources = Scarcity Decision Making – can’t have everything
because of scarcity Opportunity Cost – the decisions will mean
we have to give up something to gain something else (e.g. Colin wants to go to NYC during the March Break or have a IPAD)
PRODUCTION POSSIBILITIES CURVE DISPLAYING OPPORTUNITY COST CONCEPT
GUNS
BUTTER
Summary
Resources – Human / Capital / Natural Wants > Resources = Scarcity Scarcity Decisions Opportunity Cost Opportunity Costs – Goods & Services
Youtube clips
Recommended