1.1 scarcity and the science of economics
TRANSCRIPT
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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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Questions/Cues Notes: 1-1 Scarcity and the Science of Economics
Name
Date
Period
I. Fundamental Economic Problem
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 need is necessary for survival.
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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II. Three Basic Questions
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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II. Three Basic Questions
Scarcity forces every society to answer thebasic questions :
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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Questions/Cues Notes: 1-1 Scarcity and the Science of Economics
Name
Date
Period
I. Fundamental Economic Problem
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 need is necessary for survival.
A want is something we would like but not necessafor survival.
scarcity
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II. Three Basic Questions
Scarcity forces every society to answer thebasic questions :
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