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Economics Lesson 2 A

This document discusses the concept of scarcity and its role in economics. It defines scarcity as a universal condition arising from limited resources and unlimited wants. It outlines the basic economic problems of what, how, and for whom to produce goods, and how to distribute them. Addressing these problems through allocation of resources, investment, and technology can help optimize resource use and maximize benefits to satisfy needs and wants in the face of scarcity.

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Becky Galano
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144 views21 pages

Economics Lesson 2 A

This document discusses the concept of scarcity and its role in economics. It defines scarcity as a universal condition arising from limited resources and unlimited wants. It outlines the basic economic problems of what, how, and for whom to produce goods, and how to distribute them. Addressing these problems through allocation of resources, investment, and technology can help optimize resource use and maximize benefits to satisfy needs and wants in the face of scarcity.

Uploaded by

Becky Galano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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THE CONCEPT OF

SCARCITY
Lesson 2
Objectives:
In this lesson, you are expected to:

1.Be aware of the effects of scarcity in people’s daily lives.


2.Identify signs of scarcity in the lives of people.
3.Conclude that scarcity is a basic problem of society.
4.Suggest ways to address scarcity.
5.Demonstrate knowledge and understanding of society’s
impact on the natural world.
Study the picture below. What will happen to our country with these situation?

1.What is the message of the illustration?


2.What is its effect on the people?
How can you reduce the effects
of scarcity in your daily life?
The role of scarcity in our life
Central
Limited
resources
Scarcity problem in
economics

Unlimited
needs and Choice
alternatives
wants
Two conflicting conditions that are the essence of
economic studies:

1. Scarce Resources
2. Unlimited wants and needs

People need to satisfy their needs and wants from


these scarce resources.
SCARCITY VS. SHORTAGE

SCARCITY SHORTAGE
Lack of supply due to negative strategy
- A universal condition

 Artificial shortage
- Exist in every country  Hoarding
- permanent  Cartel
 Temporary

Optimize the use of resources


Maximize benefit from resources Price increase
Basic Economic Problems

Survival –people
Attainment-government
Basic Economic Problems

Production-act of making products and


services.

Distribution- the process of distributing the


goods and services
Basic Economic Problems

1. What to produce? 1. For whom are the good to


be produced?
2. How to produce?
2. How to distribute the goods?
3. How much to produce?
Basic Economic Problems

What to produce?

-based on the needs of the people


-economic goals
Basic Economic Problems

How to produce?

Two Techniques:
1. Labor-intensive technique
2. Capital intensive technique
Basic Economic Problems

How much to produce?


- The economy decides on what to produce and
the quantity that will be produced.
Basic Economic Problems

For whom are the goods to be produced?


-identify the people who will receive the final
products to the economy.
Basic Economic Problems

How to distribute the goods?


-people who need the product
-delivery
Basic Economic Problems

The government is doing everything to answer


the different questions related to production
and distribution for the achievement of the
national goals of our economy.
Allocating the Resources
Allocation
- the mechanism that deals with the
distribution of natural resources,
human resources, and physical resources
to diverse uses in order to answer the
problem of scarcity.
Allocating the Resources
Market
- Where buying and selling happens
- Important mechanism of allocation

Expansion
- A process in distributing goods
Allocating the Resources
Three Important Steps in Expansion

1. Effective, orderly and wise use


2. Investment
3. Use of modern technology
Summary
1. Scarcity is a permanent phenomena.
2. Solving the basic questions in Economics is the way to
address scarcity, so that the needs and wants of the people
will be satisfied.
3. People tend to compete for the use of scarce resources in
order to satisfy their needs and wants.
4. Solving the economic problems paved way for new ideas and
techniques.

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