Scarcity
What does scarcity mean in economics?
There is not enough of something for everyone to have as much as they want.
What is opportunity cost?
The value of the next best thing you give up when you make a decision.
What is economics the study of?
How people, businesses, and governments make decisions about using limited resources.
Name one resource that can be scarce.
Money, time, materials, etc
If you choose to play outside instead of doing homework, what is your opportunity cost?
The homework you didn’t finish.
Give one example of a choice you make because of scarcity.
Choosing between spending time on homework or playing video games.
Why can’t people have everything they want?
Because resources are limited, so choices must be made.
Give an example of opportunity cost using money.
If you buy a toy with your allowance, your opportunity cost is the other things you can't buy.
Why do governments and businesses have to make choices about resources?
Because resources are limited and they must decide how to use them wisely.
How does scarcity affect businesses?
Businesses must choose how to use their resources to make goods or provide services.
Why should people think about opportunity cost before making choices?
To understand what they are giving up and make better decisions.
How can understanding scarcity and opportunity cost help you in everyday life?
It helps you make smarter decisions about what is most important and what you are willing to give up.
How does scarcity impact governments?
Governments must decide how to use limited resources to best meet the needs of citizens.
How can opportunity cost affect a business’s decision?
A business may give up producing one product to focus on another that could earn more profit.
What tool does economics give us to help understand the world?
It gives us tools to understand how the world works and how to make the best choices with what we