Scarcity : whenever wants exceed what is produced by resources . Almost everything is scarce. If there is/can be a price on it, it’s scarce. Example: If Bill Gates has 2$ and wants to buy a hot dog, he can use that same 2$ for many different thing but he can only use that 2$ once. Bill Gates, like anyone else would want to use these two dollars for many different things; therefore his wants exceed his resources. Scarcity Conditions: “goods”, not “bads”: if you don’t want something like a root canal it’s not scarce. Free choice. Limited, can’t be something that is “unlimited” like air, salt water. Resources: • Natural resources: wood that you cut yourself (not bought from Rona for ex) • Labour: skills, physical labour • Capital: money, materials, computers. .. Economics : 1. Economic Agents- Individuals (Households), Firms (companies, institutions. ..), Governments (tuition, tobacco tax), Countries (economies as a whole)
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