Give and example of an opportunity cost that you experienced with your time.
Answers will vary.
What is an economic good?
A good that is scarce and has a price.
What is your opportunity cost of being in this class?
Answers will vary.
What is scarcity?
Unlimited wants + Limited Resources = Scarcity
What is a possible opportunity cost of taking a gap year after school?
Answers will vary.
True or False: Economic Goods are produced from scarce resources and have a price.
True
Why do you think we have limited resources?
There are not enough resources to meet our wants. The resources are finite.
The new Playstation 5 is out but you haven't got enough money to buy it. What type of scarcity is this?
Relative Scarcity
What type of good do you think education is?
Economic good
True or False: Opportunity cost is the cost of making choices.
True
Give an example of relative scarcity.
e.g. I don't have enough money to buy ....
True or False: People have limited wants.
False
What do we give up when we make a choice.
The opportunity to get the alternative option.
You can either go fishing or swimming. Which one do you choose? What do we call the other one in Economic terms?
Opportunity Cost
The tomato crops were damaged due to flooding and now there are no tomatoes to buy. What type of scarcity is this?
Absolute Scarcity
True or False: The Basic Economic problem is called opportunity cost.
False
Give an example of a free good.
e.g. rain, sea water, sunshine
How can a free good become an economic good?
When someone spends money on marketing and selling a free good it becomes an economic good. e.g. picking and selling wild flowers.
Is water from a natural spring, bottled and sold in the shop, and Economic of Free good?
Economic Good
Is infrastructure a free good or an economic good?
Economic good