Scarcity and Rivalry: The Foundations of Economic Decision-Making

Economics Grades High School 6:31 Video
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Lesson Description

Explore the fundamental economic concepts of scarcity and rivalry, and how they influence resource allocation and decision-making in markets.

Video Resource

Scarcity and rivalry | Basic Economic Concepts | Microeconomics | Khan Academy

Khan Academy

Duration: 6:31
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Key Concepts

  • Scarcity: Limited resources in the face of unlimited wants.
  • Rivalry: A good or resource where one person's consumption limits another's ability to consume it simultaneously.
  • Non-Rivalry: A good or resource where one person's consumption does not limit another's ability to consume it simultaneously.
  • Resource Allocation: The process of assigning scarce resources among various uses.

Learning Objectives

  • Define scarcity and rivalry and explain the relationship between them.
  • Differentiate between rival and non-rival goods, providing examples of each.
  • Analyze how scarcity and rivalry influence economic decision-making.
  • Evaluate real-world scenarios to determine the degree of rivalry of a given good or resource.

Educator Instructions

  • Introduction (5 mins)
    Begin by asking students to brainstorm examples of things they consider 'scarce' in their daily lives. Lead a brief discussion on why these things are scarce and how scarcity affects their choices.
  • Video Viewing (10 mins)
    Play the Khan Academy video 'Scarcity and rivalry | Basic Economic Concepts | Microeconomics'. Instruct students to take notes on the definitions of scarcity and rivalry, and the examples provided in the video.
  • Discussion (15 mins)
    Facilitate a class discussion on the video's content. Focus on clarifying the definitions of scarcity and rivalry, and exploring additional examples not mentioned in the video. Encourage students to think critically about the spectrum of rivalry.
  • Activity: Real-World Examples (15 mins)
    Divide students into small groups. Assign each group a set of goods or resources (e.g., water, internet bandwidth, concert tickets, public parks). Have them discuss and classify each item as either rival or non-rival, and justify their reasoning. Have each group present their findings to the class.
  • Wrap-up (5 mins)
    Summarize the key takeaways from the lesson. Reiterate the importance of understanding scarcity and rivalry for analyzing economic situations and making informed decisions.

Interactive Exercises

  • Rivalry Spectrum Sorting
    Create a digital or physical sorting activity where students drag and drop different goods and services onto a spectrum ranging from 'Highly Rivalrous' to 'Non-Rival'. This reinforces the idea that rivalry exists on a continuum.

Discussion Questions

  • How does the concept of scarcity influence the price of goods and services?
  • Can a good be both scarce and non-rival? Explain with an example.
  • How might technological advancements affect the degree of rivalry of certain goods?
  • In what ways does understanding scarcity and rivalry help policymakers make better decisions?

Skills Developed

  • Critical Thinking
  • Analytical Skills
  • Problem-Solving
  • Economic Reasoning

Multiple Choice Questions

Question 1:

Which of the following best defines scarcity in economics?

Correct Answer: Limited resources to satisfy unlimited wants.

Question 2:

A rival good is characterized by which of the following?

Correct Answer: One person's consumption limits another person's ability to consume it simultaneously.

Question 3:

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

Correct Answer: A slice of pizza

Question 4:

Which of the following is an example of a non-rival good (under normal circumstances)?

Correct Answer: A public radio broadcast

Question 5:

How does scarcity affect economic decision-making?

Correct Answer: It forces individuals and societies to make choices about how to allocate resources.

Question 6:

Which of the following scenarios would make air a more rival good?

Correct Answer: Being in a sealed, airtight room with limited oxygen.

Question 7:

Roads during rush hour are considered more ________ than roads at 3:00 AM.

Correct Answer: Rival

Question 8:

The concept of scarcity implies that:

Correct Answer: Choices must be made about resource allocation.

Question 9:

If a good is highly rivalrous, it means:

Correct Answer: One person's use significantly limits others' ability to use it.

Question 10:

Understanding scarcity and rivalry helps us to:

Correct Answer: All of the above.

Fill in the Blank Questions

Question 1:

__________ exists when there is not enough of a resource to satisfy everyone's wants.

Correct Answer: Scarcity

Question 2:

A __________ good is one where consumption by one person limits consumption by others.

Correct Answer: rival

Question 3:

The allocation of __________ resources is a central problem in economics.

Correct Answer: scarce

Question 4:

Air is generally considered a ___________ good, except in situations with limited oxygen.

Correct Answer: non-rival

Question 5:

Competition for limited housing in urban areas makes housing a ___________ good.

Correct Answer: rival

Question 6:

Economics studies how people allocate __________ resources to satisfy competing wants.

Correct Answer: scarce

Question 7:

The degree of __________ of a good can vary depending on the context and availability.

Correct Answer: rivalry

Question 8:

Because resources are __________, people must make choices about what to consume or produce.

Correct Answer: scarce

Question 9:

A hammer is a _______ good because only one person can use it at a time.

Correct Answer: rival

Question 10:

Understanding __________ and rivalry is essential for analyzing how markets function and allocate resources.

Correct Answer: scarcity

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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