Scarcity 101
The situation where unlimited wants meet limited resources.
What is scarcity?
The next best alternative you give up when you make a choice.
What is opportunity cost?
Something necessary for survival, like food, water, and shelter.
What is a need?
Focusing on one skill or product to be more efficient.
What is specialization?
Gas prices rising this year is an example of this economic concept.
What is scarcity (or supply and demand)?
Not enough time to study and hang out with friends is an example of this.
What is scarcity in time?
Choosing to play basketball instead of studying means this is the opportunity cost.
What is study time (or better grades)?
Something extra that makes life more enjoyable, like video games or fast food.
What is a want?
A trade where both sides benefit and agree freely.
What is voluntary exchange?
Inflation at the grocery store causes families to do this with their budgets.
What is make trade-offs or cut back on spending?
Scarcity forces people to do this when choosing between two or more options.
What is make choices?
Opportunity cost is important in decision-making because it helps people do this.
What is weigh the trade-offs?
Discounts, coupons, and rewards programs are examples of these.
What are incentives?
Specialization helps businesses do this.
What is produce more efficiently (or at lower cost)?
Athletes sign endorsement deals because of this.
What are financial incentives?
This resource is limited for everyone, no matter who you are.
What is time?
Buying a $200 pair of sneakers instead of saving for a car makes this the opportunity cost.
What is saving for the car?
A good grade, a paycheck, or extra playing time in sports are this type of incentive.
What is a positive incentive?
If only one side benefits, it’s no longer this type of trade.
What is voluntary exchange?
Rising college tuition creates this major economic trade-off for students.
What is the opportunity cost of taking on student debt?
Scarcity impacts not just individuals but also these large groups.
Scarcity impacts not just individuals but also these large groups.
How does opportunity cost connect to SMART goals?
What is choosing the best use of resources to meet specific, measurable goals?
How businesses use incentives to change consumer behavior.
What is advertising, discounts, or rewards programs?
How specialization and trade help countries grow their economies.
What is by increasing efficiency, productivity, and trade opportunities?
A shortage of PlayStations, sneakers, or housing is an example of this.
What is scarcity (or product shortage)?