ECONOMICS SCARCITY

WHAT IS SCARCITY?

SCARCITY REFERS TO THE STATE OF BEING IN SHORT SUPPLY OF SOMETHING. IN ECONOMICS SCARCITY REFERS TO HAVING MULTIPLES OF NEEDS AND ONLY HAVING LESS RESOURCES TO MEET THOSE NEEDS.

IMPORTANT CONCEPTS IN SCARCITY

OPPORTUNITY COST ECONOMYRESOURCES

ACTIVITY

Explain that a parent donated books for the class and that students will come to the front of the room, row by row, and serve themselves.

Call the first row of students up to the front to come take the books. Allow them to take as much books as they want.

Continue calling tables of students until the books are finished. Apologise to students who did not get the books.

Note: Students are likely to be very angry at the seemingly unfair situation; however, it is the purpose of this lesson for them to experience scarcity.

Discuss the following. A. What is the problem?

B. Why does this problem exist? Explain that the experience students had with books symbolizes a major problem that all societies face-

scarcity. Scarcity occurs because people want many things, but resources available for producing the things people want are limited.