Scarcity: The Foundation of Economics

Economics Grades High School 5:44 Video
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Lesson Description

This lesson introduces the fundamental concept of scarcity, its importance in economics, and how it drives resource allocation decisions. Students will learn to differentiate between scarce and free resources and understand scarcity's central role in economic study.

Video Resource

Scarcity | Basic economics concepts | Economics | Khan Academy

Khan Academy

Duration: 5:44
Watch on YouTube

Key Concepts

  • Scarcity
  • Free Resources
  • Resource Allocation

Learning Objectives

  • Define scarcity and explain its significance in the field of economics.
  • Distinguish between scarce and free resources.
  • Analyze how scarcity necessitates resource allocation decisions.

Educator Instructions

  • Introduction (5 mins)
    Begin by asking students what they understand by the term 'scarcity'. Briefly discuss real-world examples where they have encountered scarcity. Introduce the video 'Scarcity | Basic economics concepts | Economics | Khan Academy' and explain that it will provide a foundation for understanding scarcity in an economic context.
  • Video Viewing (10 mins)
    Play the Khan Academy video on scarcity. Instruct students to take notes on the key definitions and examples provided in the video.
  • Discussion (10 mins)
    Facilitate a class discussion based on the video. Ask students to share their understanding of scarcity and provide their own examples of scarce and free resources. Address any misconceptions or areas of confusion.
  • Activity: Scarcity in Our Lives (15 mins)
    Divide students into small groups. Each group identifies five resources and classifies each as either scarce or free. They must justify their classification with specific reasoning. Groups will then share their findings with the class.
  • Wrap-up and Assessment (10 mins)
    Summarize the key concepts of the lesson, emphasizing the centrality of scarcity in economics. Administer the multiple-choice and fill-in-the-blank quizzes to assess student understanding.

Interactive Exercises

  • Resource Classification Game
    Present students with a list of diverse resources (e.g., clean water, time, fossil fuels, sunlight, arable land). Have them individually classify each resource as scarce or free and provide a brief explanation for their choice. Then, discuss the classifications as a class and resolve any disagreements, fostering critical thinking and deeper understanding.

Discussion Questions

  • Can you think of a time when you experienced scarcity in your own life? How did you deal with it?
  • The video mentions air being a free resource. Can you think of any situations where air (or clean air) might become a scarce resource?
  • How does scarcity influence the prices of goods and services?

Skills Developed

  • Critical Thinking
  • Analytical Skills
  • Economic Reasoning

Multiple Choice Questions

Question 1:

What is the central idea upon which the entire field of economics is based?

Correct Answer: Scarcity

Question 2:

A 'free resource' is characterized by which of the following?

Correct Answer: Infinite abundance in a specific context

Question 3:

Economics is primarily the study of:

Correct Answer: How to allocate scarce resources

Question 4:

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

Correct Answer: Caviar

Question 5:

Why is labor considered a scarce resource?

Correct Answer: People require compensation for their work.

Question 6:

Before the development of towns fresh water near a lake was most likely considered what type of resource?

Correct Answer: Free

Question 7:

The ability to take a deep breath of oxygen does not affect your ability to take a deep breath, making oxygen what type of resource?

Correct Answer: Free

Question 8:

In a colony on the Moon or on Mars where is not a seemingly infinite amount of oxygen it is most likely considered what type of resource?

Correct Answer: Scarce

Question 9:

What is the purpose of economic models?

Correct Answer: To help us understand the implications of different methods of allocating resources

Question 10:

What is the implication of a scarce resource?

Correct Answer: There is not enough of something to go around.

Fill in the Blank Questions

Question 1:

The entire field of ________ is based on the idea of scarcity.

Correct Answer: economics

Question 2:

Scarcity means that there is not ________ of something to go around.

Correct Answer: enough

Question 3:

A ________ resource is so abundant that people can have as much of it as they want.

Correct Answer: free

Question 4:

Economics is the study of how to ________ scarce resources.

Correct Answer: allocate

Question 5:

________ is an expensive food made from fish eggs, is clearly a scarce resource.

Correct Answer: caviar

Question 6:

Getting caviar to your plate requires ________, adding to the scarcity of the product.

Correct Answer: labor

Question 7:

Even if humanly possible most people aren't willing to do an infinite amount of work for other people without something in ________.

Correct Answer: return

Question 8:

Air for most of human history has been considered a ________ resource.

Correct Answer: free

Question 9:

In order to get the water to your sink in your house, there might be some ________ or goods or labor involved.

Correct Answer: services

Question 10:

________ are essential to study and understand as you explore both micro and macroeconomics.

Correct Answer: resources

Educational Standards

SOC.9-12.E.1.1:Define and apply basic economic concepts of money supply, scarcity, surplus, choice, opportunity cost, cost/benefit analysis, risk/reward relationship, incentive, disincentive, and trade-off to a variety of economic situations. SOC.9-12.E.2:Evaluate how societies answer the three basic economic questions: what goods and services to produce, how to produce them and for whom are they produced. SOC.9-12.E.3.1:Analyze how price and non-price factors affect the demand and supply of goods and services available in the marketplace.

Teaching Materials

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