1. SCARCITY AND ABUNDANCE
Unit 1
Lesson 2

2. Unit 1, Lesson 2 Visual 1 Two Definitions of Scarcity
A situation in which human wants are greater than the capacity of available resources to provide for those wants.
A situation in which a resource has more than one valuable use.

3. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
A: Old Economics textbooks collected in a bookcase near the teacher’s desk with a sign that says, “Free books, take as many as you want.” The books have been there for three years.

4. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
A: Answer
Not Scare
No Alternative use

5. Unit 1, Lesson 2 Activity 1 Which Examples Illustrates Scarcity?
B: Old economics textbooks collected in a bookcase near the teacher’s desk with a sign that says, “Free books, take as many as you want.” Another sign posted in the hallway says, “$10 paid for any recycled textbook. Bring books to the Principal’s office.”

6. Unit 1, Lesson 2 Activity 1 Which Examples Illustrates Scarcity?
B: Answer
Scarce
The books may be read or they may be recycled. Two alternative uses

7. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
C: One economics textbook, five students who wish to do well in the economics course, and an important test in class the next day.

8. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
C: Answer
Scarce
The one book could be used by five different people; it has alternative uses

9. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
D: One economics textbook, five students who are not taking economics, and an important test in class the next day.

10. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
D: Answer
Not Scarce
Same number relationship, but the information in the book is not valuable to the five students

11. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
E: Petroleum in Japan, a country without its own oil fields or oil reserves

12. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
E: Answer
Scarce
Petroleum has many valuable uses in Japan

13. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
F: Patroleum in Saudi Arabia, a country with many oil fields and oil reserves.

14. Unit 1, Lesson 2 Activity 1 Which Examples Illustrate Scarcity?
F: Answer
Scarce
Petroleum has many valuable uses in Saudi Arabia, and it can be sold to people in other countries. Several valuable uses.

15. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
A: Water fountains in Rome flow continuously with water carried by viaducts from the Italian mountains.
People walking in Rome quench their thirst by drinking from the fountains.
But most of the water flows into the street and down the drains to a river that passes through the city.

16. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
A: Answer
Scarce resources treated as not scarce
The water has other valuable uses, such as irrigation or sewer treatment.

17. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
B: At closing time, restaurants in the U.S. are required to throw away all uneaten food.
To meet health standards for food preparation and the safety of consumers, the food cannot be stored for use the next day.
Also, the law prohibits restaurant employees from giving the food to the poor or dispersing it to local food banks.

18. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
B: Answer
Scarce resources treated as not scarce
The food could feed the hungry; it could be stored for future consumption; or it could be used as compost to improve soil conditions in gardens

19. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
C: Oxygen is taken from the air and stored in containers.
When divers wish to stay underwater for long periods of time, they purchase container-stored oxygen and breathe from it during their underwater activities.

20. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
C: Answer
A difficult example
Oxygen in the air around us is not scarce. People acquire it at no cost
Oxygen underwater is scarce, as are the resources needed to capture oxygen and store it in containers for underwater use.

21. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
D: Pebbles are taken from a beach to build a walkway in a homeowner's lawn.
No one else wants the pebbles.
The pebbles are not necessary for the lake’s ecosystem or animal habitat.

22. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
D: Answer
Scarce resources treated as not scarce
The pebbles have no valuable alternative use. The resources necessary to move the pebbles are scarce. They could be used for other valuable purposes.

23. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
E: A farmer has a water irrigation contract that requires the water user to use the entire allocation of water to water crops, whither or not all the water is needed for crop irrigation
If the farmer does not use all the water, he or she will receive a smaller allocation next year

24. Unit 1, Lesson 2 Activity 2 Are People Treating Resources as Scarce
E: Answer
Scarce resources treated as not scarce
The farmer is prohibited from considering other valuable uses for the water.