1.1 Scarcity and the Science of Economics

7/30/2019 1.1 Scarcity and the Science of Economics

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1.1 SCARCITY AND

THE SCIENCE OFECONOMICS


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If the only pizza restaurant in the area

produced 40 pizzas a night and usually sold out

quickly, would you be willing to pay more to

guarantee that you would get a pizza?

A. Definitely

B. Possibly

C. Definitely not
http://www.polleverywhere.com/multiple_choice_polls/MTUwNzc4OTkxNA


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Questions/Cues Notes: 1-1 Scarcity and the Science of Economics

Name

Date

Period

I. Fundamental Economic Problem


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The Fundamental Economic Problem

Societies do not have enough

productive resources to satisfy

everyones wants and needs. scarcity

Few people are satisfied with the things they have.

The study of how scarcity affects most decisions we

make is economics.

A need is necessary for survival.

A want is something we would like but not

necessary for survival.


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Name

Date

Period


Societies do not have enough productiveresources to satisfy everyones wants and needs.

Few people are satisfied with the things theyhave.

The study of how scarcity affects most decisions

we make is economics.


A want is something we would like but not necessafor survival.

scarcity


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Which do you purchase more often?

A. Things you want

B. Things you need


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II. Three Basic Questions


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Three Basic Questions

Scarcity forces every society to

answer the basic questions :

What to produce?

How to produce?

For whom to produce?


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Scarcity forces every society to answer thebasic questions :

What to produce?

How to produce?

For whom to produce?

III. Factors of Production


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The Factors of Production

Four factors of productionland,

capital, labor, and entrepreneurs

areresources required to produce the things

we would like to have.


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Land: Paid for with RENTS

Labor: Paid for with a WAGE orSALARY

Capital: Paid for with an INTEREST RATE

Business Person/Entrepreneur: Paid for with PROFIT


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What to produce?

How to produce?

For whom to produce?III. Factors of Production

Four factors of productionland,capital, labor, and entrepreneursare resourcesrequired to produce the things we would like tohave.

-Land: Paid for with RENTS-Labor: Paid for with a WAGE or SALARY

-Capital: Paid for with an INTEREST RATE

-Entrepreneur: Paid for with PROFIT


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Which of these do you think is the most

important factor of production?

A. Land

B. Capital

C. Entrepreneurs


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IV. Scope of Economics


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The Scope of Economics

Economics analyzes how societies satisfy wants

through careful use of relatively scarce resources.

Four key elements to the study of economics

Description

Analysis

Explanation

Prediction


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Which of the following does economics

describe?

A. Jobs

B. Taxes

C. Government spending

D. All of the above

N


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Name

Date

Period


Societies do not have enough productiveresources to satisfy everyones wants and needs.

Few people are satisfied with the things theyhave.

The study of how scarcity affects most decisions

we make is economics.


A want is something we would like but not necessafor survival.

scarcity


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What to produce?

How to produce?

For whom to produce?III. Factors of Production

Four factors of productionland,capital, labor, and entrepreneursare resourcesrequired to produce the things we would like tohave.

- Land: Paid for with RENTS

- Labor: Paid for with a WAGE orSALARY

- Capital: Paid for with an INTEREST RATE

- Entrepreneur: Paid for with PROFIT


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IV. Scope of Economics

Economics analyzes how societies satisfywants through careful use of relatively scarce

resources.

Four key elements to the study of economics

Description

Analysis

Explanation

Prediction

1.1 Scarcity and the Science of Economics

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