Scarcity

What is scarcity?

• How scary something is

• How long it takes to make something

• How limited a resource is

• How many people can buy a resource

Why is scarcity important?

• It helps us create more resources

• It determines a resources value

• It tells us how many people own a resource

• It lets people buy stocks

If a resource becomes MORE SCARCE, then the value of that resource goes ___.

• up

• down

If a resource becomes LESS SCARCE, then the value of that resource goes ___.

• up

• down

Scarcity exists because people have unlimited wants/needs and limited ____.

• decisions

• economics

• choices

• resources

What are the TWO fundamental resources for individuals

• money

• gas

• time

• energy

• water

Since people have scarce time and money, we have to make economic _____ on how we use these resources.

• choices

• prices

• values

• scarcity

BONUS: What was the name of the man who created the scarcity of diamonds?