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Living in a World of Living in a World of ScarcityScarcity
Consequences of Living in a World Consequences of Living in a World of Limited Resourcesof Limited Resources
We Live in a World of Scarcity
We have unlimited wants, but our resources are limited
http://1.bp.blogspot.com/-EYH1KvU4WRM/T9a032t0l7I/AAAAAAAAAMo/k0EiLl2hacs/s1600/scarcity+pockets.PNG
As a result of scarcity, we need to make choices about how we use our limited resources
We Live in a World of Scarcity
Opportunity Cost The most valued
opportunity or alternative we give up when
we make a choiceExample
When I went to the store I saw a blue tie and a red tie
that I wanted to buy. I chose the red tie - so the
opportunity cost of that decision was not having the
blue tie
Consequences of Scarcity - The Need for a Rationing
DeviceBecause of scarcity, a rationing device is needed to determine who gets what portion of all the resources and goods available
In most societies, money is used as a rationing device
http://csmres.co.uk/cs.public.upd/article-images/US-currency.jpg
Consequences of Scarcity - Competition
Because people compete for the rationing device, competition is a consequence of scarcity
http://joannameriwether.com/wp-content/uploads/2012/04/arm-wrestling.jpg
In a competitive world some people do very well, others do okay, others do quite poorly