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Scarcity

Scarcity. Choice. Opportunity Cost. Limited Resources. Unlimited Wants. Scarcity. Choice. Opportunity Cost. Relationship. Scarcity. Scarcity is -a universal problem. It happens everywhere, whether in a rich or poor country. -a relative concept.

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Scarcity

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  1. Scarcity Choice Opportunity Cost

  2. Limited Resources Unlimited Wants Scarcity Choice Opportunity Cost Relationship

  3. Scarcity Scarcity is -a universal problem. It happens everywhere, whether in a rich or poor country. -a relative concept. Whenever we want more that we have, Scarcity exists. Goods are scarce if 1) we want to have more of it, 2) its availability cannot satisfy every want for it. Example of scarce goods: Money, happy, health, friendship,etc.

  4. To make a choice We have to make choices as we cannot satisfy all wants with limited resources. 1) Compare the values of different options; 2) the highest valued option is your choice; 3) the highest valued option forgone is your cost. P.S. No choice no cost

  5. Opportunity Cost Opportunity Cost of a choice is the highest valued option forgone.

  6. Remarks 1. Cost arises from making choices. 2. Cost changes only if the highest-valued option forgone changes. 3. A change in cost is not equal to a change in value.

  7. The value of go on picnic decrease, then the opportunity cost decrease. No change The value of go on picnic increase, then the opportunity cost increase. Although the value of playing table tennis decrease, it is not the opportunity cost, then the opportunity cost is no change. Opportunity Cost: Go for picnic. Yesterday, there were many rubbish in the countryside. Yesterday, I could go on a picnic with family and I could play table tennis with my friend. At last, I played table tennis with friend. Then the opportunity cost is go on the picnic with family. But the food was very tasty, we still enjoy it very much, we were happy yesterday. I think the table of yesterday is very bad. Case 1 Friend (play table tennis) Brother (go on picnic)

  8. 2 1 3 Jeans $150 Coat $100 Skirt $50 T-shirt $80 Dress $122 Sale She have $100. Case 2 When I choose skirt, My opportunity cost iscoat. My first priority is skirt, Unavailable options: Dress, Jeans When I choose coat, My opportunity cost is skirt. the second priority is coat, Available options: When I choose T-shirt, My opportunity cost is skirt. the third priority is T-shirt. Coat, Skirt, T-shirt

  9. Scarcity arises because the supply of resources or goods is fixed in supply, am I right? Scarcity arises is because we do not want more of it. For example, sea water. Scarcity is a relative concept. It depends on the quantity available relative to wants. Do you know? NO! NO! NO! YOU ARE WRONG! Yes! Case 3

  10. Questions & Answers

  11. Q1 Miss Cheng could spend two hours at a concert or tutoring a student at $70 per hour. She could use the time on painting instead and earn a total of $170. If the price of the concert ticket is $250, what is the opportunity cost of her choice of going to the concert? A. $410 B. $420 C. $430 D $440 Answer : C. $430

  12. Q2 Mary has accumulated 20 Coupons. What is the opportunity cost to her if she uses them to exchange for one camera? A.Cup B. Bag C. Cup and Bag D. Cup or Bag Answer: C. Cup and Bag

  13. Q3 A. Once a choice is made, the problem of scarcity is solved. B. A good is scarce if not everyone has it. Which of the following statements about scarcity is true? C. Scarcity means unlimited human wants. D. Both rich people and poor people face the problem of scarcity. Answer: D

  14. Which of the following are opportunity costs of attending school? (1) Poor examination results (2) Income forgone (3) School fees (4) Expenditure on dinners Q4 A. (1) and (4) only B. (1) and (3) only C. (2) and (3) only Answer: D. (2) and (4) only C. (2) and (3) only

  15. Name List Rebecca Cheng 鄭倩雯 Eva Ip 葉芷筠 Tobey Wong 黃慧筠 Ida Yeung 楊芷媚

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