The study of how to meet

unlimited wants and needs with limited resources.

All I want to know

is

I want a lot of stuff but

I can’t afford it all?

You have to deal with

scarcity!

NOT ENOUGH RESOURCES

TO COVER ALL YOURWANTS AND NEEDS

Everyone has to deal with scarcity, including Individuals Families Schools Communities Businesses Nations

BASIC ELEMENTS USED TO CREATE GOODS AND

SERVICES

Natural Gifts of nature – sunlight, water, land, trees,

etc. used to produce goods and servicesHuman

Physical and mental labor people use to produce goods and services

Capital Buildings, machines, technology and tools used

to produce goods and services

Money is a resource called

financial capitalwhich allows you to purchase other

resources

Because you have to deal with scarcity, you have to make

CHOICES!

Every choice you make has a

consequence!

Each consequence is either a

cost or a benefit!

COSTS = What you must give up

BENEFITS = What you will receive

How to best use your

resources to meet your

wants and needs!

You are starting to understand

BASICECONOMICS

Unlimited wants and needs Limited resourcesNatural, Human, Capital, Financial

Scarcity

Choices

Costs and Benefits

=

=

=

+

Consequences

=