SSEF1

The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human), capital (capital goods), entrepreneurship)cList a variety of strategies for allocating scarce resources. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments confront scarcity by making choices.