Scarcity and Rivalry in Economics

This video introduces the foundational economic concepts of scarcity and rivalry. Scarcity refers to limited resources and unlimited wants, exemplified by resources like oil. Rivalry involves competition for resources, where one person's use limits others. The video explores a spectrum of rival and non-rival goods, using examples like housing and air. It emphasizes understanding these concepts to allocate resources effectively.

What are the two foundational concepts discussed in the video?

• Inflation and Deflation

• Supply and Demand

• Scarcity and Rivalry

• Profit and Loss

Which of the following is an example of a scarce resource?

• Water in the ocean

• Sand

• Oil

• Sunlight

What does it mean for a good to be rivalrous?

• It is free for everyone

• Its use by one person limits its use by others

• It is abundant

• It is expensive

Which of the following is a rival good?

• A public park

• A slice of cake

• A digital song

• A lighthouse

What is the term used to describe goods that are not rivalrous?

• Public goods

• Private goods

• Exclusive goods

• Non-rival goods

Which of the following is an example of a non-rival good?

• A sandwich

• A congested road

• Air to breathe

• A book

Under what condition might air become a rival good?

• During a rainstorm

• On a windy day

• In a closed room with limited oxygen

• In a large open field

How does the concept of rivalry affect resource allocation?

• It has no effect on allocation

• It makes resources cheaper

• It increases the abundance of resources

• It requires careful allocation to avoid conflicts

What happens to roads during rush hour in terms of rivalry?

• They become less used

• They become non-rival

• They become rival

• They become more efficient

Why is it important to understand the concepts of scarcity and rivalry in economics?

• To increase personal wealth

• To better allocate resources among people

• To reduce taxes

• To eliminate competition