Scarcity and Resources

1. Scarcity and Resources

2. How can we see scarcity in the world around us? What are resources? How do scarcity and resources relate to economics? Guiding questions

3. Question… what was the purpose of the doughnut game we played on Monday? review

4. A situation in which human wants and needs are greater than the capacity of available resources to provide for those wants and needs A situation in which a resource has more than one valuable use, and a decision must be made as to how to use it. Two Definitions of scarcity

5. We can’t always get what we want . . . We always want and need more than our resources will give us. The definition in English . . .

6. We’re scared of what?: Determining Scarcity in real-life • Read each statement below and decide whether it is scarce or not. 1.) Old economics textbooks collected in a bookcase near the teacher’s desk with a sign that says “Free books, take as many as you want.” The books have been there for three years. • Not scarce, no alternative valuable use. 2.) Old economics textbooks collected in a bookcase near the teacher’s desk with a sign that says “Free books, take as many as you want.” Another sign posted in the hallway says “$10 paid for any recycled textbook. Bring books to the Principal’s office.” • Scarce. Books may be read or they may be recycled.

7. 3.) One economics textbook, five students who wish to do well in the economics course, and an important test in class the next day. • Scarce. Book can be used by five different people, hence, different valuable alternative uses. 4.) Petroleum in Japan, a country without its own oil fields and without oil reserves. • Scarce. Petroleum has many valuable uses in Japan.

8. 5.) Petroleum in Saudi Arabia, a country with many oil fields and many oil reserves. • Scarce. Petroleum has many valuable uses in Saudi Arabia and can be used or sold to people in other countries, hence, several valuable resources. 6.) Oxygen is taken from the air and stored in containers. When divers wish to stay underwater for long periods of time, they purchase container-stored oxygen and breathe from it during dives. • Scarce. Because oxygen underwater is scarce, as are the resources needed to capture and store it in containers. 7.) Pebbles taken from a beach to build a walkway in a homeowner’s lawn. No one else wants the pebbles. The pebbles are not necessary for the lake’s ecosystem or animal habitat. • Not Scarce. The pebbles have no other valuable alternative use. The resources necessary to move the pebbles (like time and effort) are scarce. They could be used for other purposes.

9. Watch the video clips about how to make crayons. List as many different resources as you can that you need to make a crayon Watch How it’s Made

10. Waxes (paraffin) • Oven • “secret powder” • Synthetic chemicals • Keep wax from sticking • Styric acid • Wax tint • Blending machine • Rotary machine • Crayon molds • Cool water • Blade What Sorts of Resources did you need? In pairs, categorize these resources. Be prepared to share your categories!

11. Four categories of resources Natural resources Human resources Capital resources Entrepreneurship Factors of Production

12. Items provided by nature Must be a scarce resource (we need more than we actually have) Natural resources

13. Physical labor AND knowledge and skills Human resources

14. Manufactured materials used to create other goods and services Capital resources

15. Skills and abilities you need to run a business Entrepreneurship

16. List as many resources as you can in the How It’s Made clip After the video, group everything into categories on the four factors of production How it’s made part 2

17. Scarcity is THE central problem in economics Resources can be divided into four categories (factors of production) Vocab: To sum up… • Scarcity • Factors of production • Natural resources • Human resources • Capital resources • Entrepreneurship