Scarcity
What is the definition of Scarcity?
A limited amount of resources to meet unlimited wants and needs.
What is economics?
The study of how individuals, families, businesses, and societies use limited resources to fulfill their unlimited wants
What is demand?
The willingness and ability to buy a product at a given price.
What is supply?
Quantity supplied of a product
Which country is considered to be the happiest country in the world?
Denmark
Why do we have Scarcity?
We have unlimited wants and needs BUT limited resources create scarcity.
What is microeconomics?
Examines 1 product, 1 firm, 1 industry, or 1 person.
If demand INCREASES will the demand curve shift to the right or to the left?
Right
True or false: Output prices affect supply.
False
I want to buy a new car. My choices are a red convertible sports car or a full size pick up truck. I chose the convertible over the truck. What is my opportunity cost
The truck
What are the three causes of scarcity?
Personal Perspective: your own feelings of what is wanted and needed.
Poor distribution of resources: not using your resources to their potential.
Rapid increase in demand: a sudden rush to use resources can cause a shortage.
What is Macroeconomics?
examines behavior of the whole economy at once
True or false: Income influences demand.
True
If there is a decrease in supply, what way does the curve shift? Right or left?
Left
True or False: Command economies are run by governments
True
What are three ways to deal with scarcity?
1. Doing without something
2. Creating more resources
3. Make better use of our resources
What are the 4 Factors of Production:
2. Labor (human)
3. Capital (machines/tools)
4. Entrepreneurship (initiative and willingness to take risk to gain profit)
What happened to the demand of toilet paper during covid?
It Increased
An oil well explosion reduces the amount of oil available to make gasoline for cars and trucks. What will happen to the price of gas?
Price of gasoline will increase.
What country just changed its currency to bitcoin?
El Salvador
Give an example of opportunity cost.
The #1 alternative is the opportunity--the choice you do NOT make.
What are the three economic questions?
1. What to produce?
2. How to produce it?
3. For whom to produce?
If the demand of tamales increases during the holidays but the supply of corn husks decreases, what will happen to the price of tamales?
It will increase.
What song did we watch a parody of that explained Supply and Demand that you all loved.
Super Bass
Name one person in this class that you would like to give 3 extra credit points to.
*If you chose yourself you get one.