Billions of people could benefit from better economic policies. Millions are dying because of bad ones. Sometimes the logic of economics is so compelling that its impossible for economists not to take a stand. Tim Hartford (author of The Undercover Economist)

The study of how society manages its scarce resources by making decisions.

NeedsWants

Needs Wants Something that is necessary for survival Something we desire but is not needed for survival

How much money are you wasting? 1)List all goods and services you buy in a month 2)List how much each good or service costs. 3)Ask yourself if you truly NEED each good or service. Then, write need next to the items you feel that you must have. 4)Add up all of the goods and services that do not have need written next to them. 5)That is how much money you DID NOT need to spend for that month.

Good Service Something that you can use or consume Something that is done for you

Are these goods and services scarce?

Limited quantities of resources to meet unlimited wants

A situation in which a good or service is temporarily unavailable. Basket of Knowledge!!!!

How can scarcity be powerful if you want to start a business?

1.Discuss with a partner an example of a store or other business entity that has scarcity power over their products. 2.Every student then should write a short explanation on the store or business entity that they believe has scarcity power. Be sure to provide sufficient evidence. (no more than half a page) -Example of evidence: location, unique good, etc 3. Make sure your name is at that top and you have written in complete sentences