2. Big Idea Economics is a study of choices, either societal or individual Why must we make choices? Because we have limited resources… Scarcity is the idea that human wants exceed the resources available

3. Scarcity as basis of economics Because economics is a study of choices, and choices are required because of scarcity – scarcity becomes a central principle of economics

4. A good is considered scarce if the amount of people demanding a good (quantity demanded) exceeds the amount that is supplied (quantity supplied) – when the price of the good is zero

5. Some examples… The Trouble with Tomatoes Jay-Z

6. Exit Slip If you were a millionaire, would you escape the basic economic problem of scarcity? If so, how? If not, why not?