DO NOW 1. Why can’t we have “it all?” Explain… 2. List three services.

Why can ’ t we have it all? There are more wants and needs than there are resources to fulfill them… This gap between what people want and the resources available to meet those wants is called scarcity.

Oh Scarcity! (Oh Christmas Tree) Oh, Scarcity! We can’t have all the things we want. Oh, Scarcity! Oh, Scarcity! We cannot have it all. We really want a lot of stuff. But sometimes there’s just not enough. Oh, Scarcity! We cannot have it all.

Vocabulary Want: Something that is not needed to survive but that makes life better. Need: Something essential for survival

Vocabulary Goods: physical objects that people, businesses, or governments buy Services: the actions or activities that one person performs for another.

Services - Angie’s List…

Is scarcity the same as a shortage?

3 Requirements for scarcity: 1) Must be something we desire 2) Must be limited in amount Example : Water is scarce in the desert to a thirsty person.

3 Requirements for scarcity 3) Must have more than one valuable use Water that is plentiful in a large lake is still “scarce” because it has many valuable uses: Crop irrigation, production of electricity, fish habitat, venue for ships and boats, forms of recreation.

Activity 1: Small Groups Identify whether or not the item is scarce. If you finish early, move on to Activity 2

Answers A. (NS) No alternative valuable use. B. (S) The books may be read or they may be recycled. Two valuable uses. C. (S) The one book could be used by five different people; it has valuable alternative uses.

Answers D. (NS) Same number relationship, but the information in the book is not valuable to the five students. E. (S) Petroleum has many valuable uses in Japan. F. (S) Petroleum has many valuable uses in Saudi Arabia, and it can be sold to other people in other countries. Several valuable uses.

Entrepreneurs

Factors of Production

1. Land 2. Labor 3. Capital Human & Physical

LAND (natural resources) 6 Industries fishing and trapping agriculture mining water fuel and energy logging and forestry

What “LAND” is in a pencil?

LABOR Using muscle power and brain power!

PHYSICAL CAPITAL Man-made tools and equipment!

HUMAN CAPITAL The knowledge and skills gained from education and experience

What categories do these productive resources fall under? Truck Driver: Mixing Spoon: Delivery Van: Walnuts: Baker: Blender: Water: Labor Capital Land Labor Capital Land

Pans, olive oil its-made-season-6/ its-made-season-6/ Record the factors of production involved in making this item

Intro to Section 2 Create a wish list. Suppose I gave you $5 to spend. List the top 3 goods and/or services that you would spend with this money.

“Choosing is Refusing” Your choices always involve costs. Costs do not always involve money. The most important type of cost is OPPORTUNITY COST: the next best alternative that you give you when you make a choice.

Opportunity Cost What you would have done with your resources had you not used them the way you did. It’s your LOST OPPORUNITY!

College?

Go to the Movies GoodPrice Gum.50 Soda1.00 Movie Ticket5.00