Who Decides? Scarcity and Resource Allocation in Economics

1. Who Decides? Scarcity and Resource Allocation in Economics Ms. Helton 1/17/12 Global Issues

2. Bellwork • What does the term scarce mean? Can you identify a scarceresource in your life?

3. Scarcity • Limited resources versus limited wants • All economies face the problem of human wants for goods and services is greater than what can be produced using all available resources • Have to answer 3 questions (you’ve seen this before): • What goods and services will be produced? • How will goods and services be produced? • For whom will these goods and services be produced?

4. Resource Allocation • This information is always decided by a group of central planners- either govt officials or businesses/individuals • What= deciding how much of each good and service will be produced • How=production methods and what mix of resources will be used to produce different goods and services • For whom=which households and individuals will receive goods and services to consume

5. Group Activity 1 • In your group, look at Visual 2 • Use info from your worksheet (either Activity 1 or Activity 2 depending on group) and determine how your economy will respond to what’s on Visual 2 • Write down any changes in goods/services produced and how these teens will be prepared to enter the workforce of their country

6. Group Activity 2 • You will need to split from your usual group-mixed members who just worked on either Activity 1 or Activity 2 • Activity 1-Market Economy • Activity 2- Command Economy • Your new group has been given a newspaper headline –discuss resource allocation response from either a command, market, or mixed perspective • Why is your solution the best one to the problem presented? Be prepared to discuss your answers with the class

7. Group Assessment/Exit Slip • Do the task given on Activity 4 worksheet • Write on your own paper; put all group names on the same sheet