Applied Econ_intro part2 _2024-2025.pptx

Applied Economics
scarcity

1. Scarcity: The Central Problem of Economics

2. Hunger Games Part 2 A Beautiful Mind Cast Away Wallstreet The Big Short

3. Scarcity - Is the basic and central economic problem confronting every person and society.

4. Scarcity - It is at the heart of the study of economics and the reason why you are studying it now.

5. Scarcity - Dictionary of Economics defines scarcity as a commodity or service being in short supply, relative to its demand.

6. Scarcity that is, insufficiency of resources to meet the wants of consumers and insufficiency of resources for producers that hamper enough production of goods and services.

7. Scarcity -is a condition where there are insufficient resources to satisfy all the needs and wants of a population.

8. problem of Scarcity LIMITED RESOURCES UNLIMITED WANTS SCARCITY

9. Scarcity Relative Scarcity is when a good is scarce compared to its demand. Absolute scarcity is when supply is limited.

10. Scarcity Relative Scarcity refers to the value we place on resources. Absolute scarcity refers to the physical limitation

11. Absolute or Relative? Coal 6. Time Water 7. Oil Classroom Chair 8. Clean Air Land 9. Wood Diamonds 10. Vaccine

12. economics LIMITED RESOURCES UNLIMITED WANTS ALLOCATION

13. Note!!! - If the scarcity does not exist, there is no need for us to economize. - But since we know that our resources are limited and we cannot produce all the goods and services we want to have, then there is a need for us to properly allocate resources so that we can produce goods and services that will maximize our satisfaction.

14. ‘ There is no such thing as free lunch’