What do these items have in common?What do these items have in common?

ScarcityScarcity

Today, we’ll be analyzing scarcity and Today, we’ll be analyzing scarcity and examine how it can be used to analyze examine how it can be used to analyze human behavior. human behavior.

Scarcity Scarcity

2 definitions2 definitions A situation in which human wants are greater A situation in which human wants are greater

than the available resources to provide for than the available resources to provide for those wants. those wants.

A situation in which a resource has more than A situation in which a resource has more than one valuable use. one valuable use.

Are these the same as yours?Are these the same as yours?

Scarce?Scarce?1.1. Old econ books collected in a bookcase near the teacher’s desk with a Old econ books collected in a bookcase near the teacher’s desk with a

sign that says “Free books, take as many as you want.” The books sign that says “Free books, take as many as you want.” The books have been there for three years.have been there for three years.

3.3. Old econ textbooks collected in a bookcase with a sign that says “Free Old econ textbooks collected in a bookcase with a sign that says “Free books, take as many as you want.” Another sign posted in the hallway books, take as many as you want.” Another sign posted in the hallway says $10 paid for any recycled textbook. Bring books to Principal’s says $10 paid for any recycled textbook. Bring books to Principal’s office.”office.”

5.5. One econ book, five students who wish to do well in their econ course, One econ book, five students who wish to do well in their econ course, and an important test the next day. and an important test the next day.

7.7. One econ book, five students who are not taking economics, and an One econ book, five students who are not taking economics, and an important test the next day. important test the next day.

9.9. Petroleum in Japan, a country without its own oil fields and without oil Petroleum in Japan, a country without its own oil fields and without oil reserves.reserves.

11.11.Petroleum in Saudi Arabia, a country with many oil fields and oil Petroleum in Saudi Arabia, a country with many oil fields and oil reserves. reserves.

Scarcity and AbundanceScarcity and Abundance

Resources can be both scarce and Resources can be both scarce and abundant at the same time.abundant at the same time.

Scarcity/Abundance depends upon many Scarcity/Abundance depends upon many things: things: SituationSituation PerspectivePerspective LocationLocation Amount of resources available to “spend”Amount of resources available to “spend”

Why is there a lot of food wasted in Why is there a lot of food wasted in the cafeteria?the cafeteria?

Using what you’ve learned today about Using what you’ve learned today about scarcity, supply a thorough, reasoned scarcity, supply a thorough, reasoned answer to this question. answer to this question. (Think about things like – do (Think about things like – do

students pay for the food with their own money? Can they store it? Resell it? What students pay for the food with their own money? Can they store it? Resell it? What are the valuable uses of the food in the cafeteria?)are the valuable uses of the food in the cafeteria?)