“Billions of people could benefit from better economic policies. Millions are dying because of bad ones. Sometimes the logic of economics is so compelling that it’s impossible for economists not to take a stand.”› Tim Hartford (author of The

Undercover Economist)

The study of how society manages its scarce resources by making decisions.

Needs Wants

Needs Wants

Something that is necessary for

survival

Something we desire but is not needed for

survival

How much money are you

wasting?

1) List all goods and services you buy in a month

2) List how much each good or service costs.

3) Ask yourself if you truly NEED each good or service. Then, write “need” next to the items you feel

that you must have.4) Add up all of the goods and services that do not have “need”

written next to them.5) That is how much money you DID

NOT need to spend for that month.

Good Service

Something that you can use or consume

Something that is done for you

Are these goods and services scarce?

Limited quantities of resources to meet unlimited wants

A situation in which a good or service is temporarily unavailable.

Basket of Knowledge!!!!

How can scarcity be powerful if you want to start a business?

1. Discuss with a partner an example of a store or other business entity that has scarcity power over their products.

2. Every student then should write a short explanation on the store or business entity that they believe has scarcity power. Be sure to provide sufficient evidence. (no more than half a page) - Example of evidence: location, unique

good, etc3. Make sure your name is at that top and you

have written in complete sentences