Scarcity
What is Scarcity?
Scarcity is when there are not enough resources/goods to meet everyone's wants.
What does it mean to make a choice?
Making a choice means selecting between two or more options.
What is opportunity cost?
Opportunity cost is the best alternative you give up when making a choice.
What does risk mean?
Risk means the chance that you might lose something or face an uncertain outcome.
Give an example of a scarce resource.
Fresh water, food, or housing
Why do we have to make choices?
We have to make choices because we can't have everything we want.
Give an example of opportunity cost from your life.
Example: Choosing to buy a bike instead of a skateboard
What is a situation where you too a risk?
Example: Trying out for a sports team
How does scarcity affect our choices?
Scarcity forces us to prioritize our needs and wants; we can't have everything we desire
Describe a time when you had to make a choice between two things.
Example: Playing video games or doing homework.
Why is it important to consider opportunity costs when making a choice?
Considering opportunity cost helps us make better decisions by weighting what we give up against what we gain.
Why do people sometimes take risks?
People take risks because they seek rewards, experiences, or new opportunities, even if there's a chance of failure.
What happens when there is too much demand for a scarce item?
When demand exceeds supply for a scarce item, prices may increase, or people may not be able to get the item at all.
What factors influence our choices?
Factors include personal preferences, values, availability of resources, and advice from others.
How can knowing opportunity cost help you in the future?
Knowing opportunity cost can help us make more informed choices in the future and avoid regret.
How can you reduce risk in your choices?
To reduce risk, you can gather information, seek advice, and consider alternatives before making a choice.