1. Date: February 4, 2013 Topic: Scarcity Aim: How does scarcity impact various economic decisions? Do Now: HANDOUT

2. YOU NEED FOOD!

3. FOR SOME SILLY REASON, YOU MAY WANT HIS CAR, OR HIS JEANS, OR THOSE SUNGLASSES.

4. Making Choices What is the difference between a need and a want? What is the difference between a need and a want? Can you have everything that you need or want? Can you have everything that you need or want? Economics  study of how people satisfy their needs and wants by making choices. Economics  study of how people satisfy their needs and wants by making choices. Why people make choices? ***SCARCITY!! Why people make choices? ***SCARCITY!!

5. What are some choices that you have made or are expecting to make in the coming year? What are some choices that you have made or are expecting to make in the coming year?

6. OR!!!

7. Scarcity and Shortage Scarcity  nobody can have an endless supply of everything  ALWAYS! Scarcity  nobody can have an endless supply of everything  ALWAYS! Shortage  producers cannot or will not offer goods or services at the current prices  SHORT/LONG TERM. Shortage  producers cannot or will not offer goods or services at the current prices  SHORT/LONG TERM. Shortages can be long-term or short-term.. Shortages can be long-term or short-term..

8. Think of scarcity as being… BROAD (OR CONSTANT) Think of a shortage as being… LIMITED

9. THE 1970’S

11. THE FACTORS OF PRODUCTION Definition: the resources that are used to make all goods and services: Definition: the resources that are used to make all goods and services: a.) Land – natural resources used to produce goods. b.) Labor – effort that a person devotes to a ask for which they are paid. c.) Capital – any human made resource used to produce other goods or services.

12. A.) Physical Capital  human made objects used to create other goods and services. A.) Physical Capital  human made objects used to create other goods and services. B.) Human Capital  knowledge and skills a worker gains through education and experience. B.) Human Capital  knowledge and skills a worker gains through education and experience. PHYSICAL CAPITAL HUMAN CAPITAL

13. ENTREPRENEURS ENTREPRENEURS ARE AMBITIOUS LEADERS WHO DECIDE HOW TO COMBINE LAND, LABOR, AND CAPITAL RESOURCES TO CEATE NEW GOODS AND SERVICES AND I’M BEYONCE AND I’M LEAVING THIS SLOUCH FOR MR. MCHUGH!

15. HOMEWORK