A1-Scarcity and the Science of Economics H-SS 12.1-Students examine the causal relationship between scarcity and the need for choices.

Scarcity List 10 things that are scarce List 10 things that aren’t scarce 1 2 3

Scarcity- is the fundamental economic problem facing all societies that results from a combination of scarce resources and people’s virtually unlimited wants. In Fact, Economics is the study of how people try to satisfy seemingly unlimited and competing wants with the careful use of limited resources.

Sketch and Label Figure 1.1 (pg. 6)

Need- a basic requirement for survival, includes food, clothing, and shelter. Want-is a way of expressing a need. Example- you need food but you want pizza. TINSTAAFL-There Is No Such Thing As A Free Lunch. If you are getting the good or service for free-- someone paid for it.

Scarcity forces people and societies to make Choices on how to allocate its limited resources. All societies must answer three basic questions: What to Produce How to Produce For Whom to Produce

Factors of Production Page 7- read aloud students take five bullet point notes on each Land Capital Labor Entrepreneurs Page 7- read aloud students take five bullet point notes on each Land Capital Labor Entrepreneurs The reason people cannot satisfy all their wants and needs is scarcity of productive resources. The factors of production are the resources required to produce the things we want and need.

Scope of Economics Description-describe economic activity-(GDP) Gross Domestic Product-measure a country’s output Analysis-close look at economic activity to find out why things are happening. Explanation-explain how it is working and how to fix it if needed Prediction-explain what direction economy is going—are things getting better or worse?