Scarcity and Choice Kerry Montano University High School Objective After taking notes from a Powerpoint student will work with a partner to identify conditions that might cause people to ID: 438342
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Slide1
What is Economics?Scarcity and Choice
Kerry Montano
University High SchoolSlide2
ObjectiveAfter taking notes from a
Powerpoint
, student will work with a partner to identify
conditions that might cause people to
treat scarce
resources as if they were not scarceSlide3
What is economics?
Economics
is the study of how people try to satisfy what appears to be seemingly unlimited and competing wants through the careful use of relatively scarce resources
.
Resources
are inputs used to create economic goods: Land, Labor, Skills, Natural resources,
capital
(human made resources)Slide4
We have the same resources as cavemen but they did not know how to use themSlide5
Scarcity requires choice
Scarcity
– there is less of a good freely available from nature than people would like.
Wouldn’t we all love to drive up to our beachfront mansions in our fancy new Porsches?Slide6
What is scarce?
Weeds are not scarce because they are usually considered undesirable. If a particular weed is found to have cancer fighting qualities, it will become scarceSlide7
If there is more than one use of a resource, it is considered scarce
Scarce goods – food, meat, veggies, etc.
Limited Resources – land has degrees of fertility
Choice
is the act of selecting among alternativesSlide8
Which of the following are considered scarce?
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
.Slide9
Scarce?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.”Slide10
One economics textbook, five students who wish
to do well in the economics course, and
an important
test in class the next day
.
One economics textbook, five students who
are not
taking economics, and an important test
in the
economics class the next day.Slide11
Petroleum in Japan, a country without its own oil
fields and without oil reserves
.
Petroleum in Saudi Arabia, a country
with many
oil fields and oil reserves
.Slide12
With a partner, discuss the following 4 scenarios to determine which examples show people treating
scarce resources
as not scarce and which examples
show people
treating scarce resources as
scarce
In your notes, write your answers and be prepared to share with the classSlide13
1. Fountain in RomeWater fountains in Rome flow
continuously with
water carried by viaducts from the
Italian mountains
. People walking in Rome
quench their
thirst by drinking from these
fountains. But
most of the water flows into the street
and down
the drains to a river that passes
through the
city.Slide14
2. Leftover restaurant foodAt closing time, restaurants in the United
States 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
foodto
the poor or dispersing it to local food banks.Slide15
3. OxygenOxygen 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.Slide16
4. Beach pebblesPebbles 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.Slide17
1. Scarce resource treated as not scarce. The
water has
other valuable uses, such as irrigation or
sewer treatment.
2. Scarce
resource treated as not scarce. The food
could feed
hungry people; it could be stored for future
consumption; or
it could be used as compost to
improve soil
conditions in gardens.Slide18
3. Oxygen in the air around us
is not
scarce. People routinely acquire it at no
cost. There
is more of it than individuals can use.
But oxygen
underwater is scarce, as are the
resources needed
to capture oxygen and store it in
containers for
underwater use. So container-stored oxygen
is scarce
.Slide19
4. Not scarce. The pebbles have no valuable
alternative use
. The resources necessary to move the
pebbles [time
and effort, for example] are scarce. They
could be
used for other valuable purposes.