Define and Explain: Scarcity

Example: unlimited wants

Buying a house leads to new wants (paint, rugs etc.) and needs like repairs (broken toilet) and maintenance (cutting grass, cleaning etc.)

Example: Human Resources

Coal at the beginning of the industrial revolution-

Two types of Limited resources

Natural Resources and Human Resources

Define: Unlimited want

No matter how much we get we always want more. Another way of saying this is that we are always making new lists of wants as we obtain goods and services. Conclusion: Our list of wants is growing exponentially.

What is the fundamental economic dilemma?

Scarcity

What is the relationship between unlimited want and limited resources?

There is a greater want than resources can provide which leads resources to become scarce.

Example: Natural Resources

crude oil (not gasoline), trees (forest)

Define: Human Resources

human capital (skills and abilities that people possess).

Define: Scarcity

the condition that exists in society where there are not enough resources to satisfy people's wants/needs.

Define: Natural Resources

things that are in their "natural state", and have not been altered by human hands.

Examples: needs

water, food, shelter, clothing, medical modern additions- transportation, education