Economic Concepts Worksheet
Concept Application of Concept from Personal Experience Reference to Concept in Reading
Scarcity means that people want more than is available. Scarcity limits us both as individuals and as a society. As individuals, limited income (and time and ability) keep us from doing and having all that we might like. As a society, limited resources (such as manpower, machinery, and natural resources) fix a maximum on the amount of goods and services that can be produced.
Scarcity requires choice. People must choose which of their desires they will satisfy and which they will leave unsatisfied. When we, either as individuals or as a society, choose more of something, scarcity forces us to take less of something else. Economics is sometimes called the study of scarcity because economic activity would not exist if scarcity did not force people to make choices.
Here at the UOP campus we have limited our degree programs to our students. During the month of
August we are giving our students three degree programs choices: GEN/101, MBA and MBA/HCA. The university had to decide what programs were more valuable to our students and motivate students to go to school in August. August is a busy month for students to start school. The sooner the students start classes the sooner the students can graduate. The university does not offer new campus classes every month due to the demand for students coming to our campus. UOP cannot afford to have a low enrollment month in August; therefore, we have to create an incentive for students to start class in August.
Scarcity and Choice: http://ingrimayne.com/econ/Introduction/ScarcityNChoice.html
Opportunity Cost:
The amount of other products that must
be forgone or sacrificed to obtain 1 unit of a specific good. The law of increasing opportunity
costs: The more of a product that is produced, the greater is its opportunity cost ("marginalâ being implied).
My husband and I were...