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Understanding that we cannot have everything we want because resources are limited.
Imagine you are at a birthday party with 10 friends, but there are only 5 cupcakes left. What happens next? This is a puzzle that everyone in the world has to solve every single day!
Have you ever wanted a new toy, a snack, and a book all at the same time, but you only had enough money for one? This feeling of 'not having enough' is called scarcity. Scarcity means that our wants are very big, but the resources (like money or time) are limited.
Think of it like this: If there are students who want to sit in the blue chair, but there is only blue chair, we have scarcity. We cannot always have everything we want because there isn't enough for everyone. This is the most important rule in economics!
Quick Check
If a bakery has 2 cookies left and 5 people want to buy them, is that an example of scarcity?
Answer
Yes, because there are not enough cookies for everyone who wants one.
Because of scarcity, we have to make choices. Since we cannot have everything, we must pick what we want most. When you make a choice, you are picking one thing and giving up something else.
For example, if you have hour of free time, you have to choose between playing outside or reading a book. You cannot do both at the exact same time. Every time you say 'yes' to one thing, you are saying 'no' to something else. This helps us use our limited resources in the best way possible.
1. You have dollar in your pocket. 2. An apple costs dollar. 3. A granola bar costs dollar. 4. Since , you cannot buy both. 5. You must make a choice based on which one you want more right now.
Quick Check
Why can't we have every single thing we want?
Answer
Because resources like money, time, and goods are limited (scarcity).
A resource is anything we use to get what we need or want. Some resources are things you can touch, like wood to build a house or water to drink. Other resources are things you can't hold, like time.
Even grown-ups and governments deal with scarcity. A city might have enough money to build a new park OR a new library, but not both. They have to look at their resources and decide which one the people need more. Learning to make good choices is a skill you will use your whole life!
Imagine your school has a small piece of land. 1. The soccer team wants to use the land for a goal. 2. The science club wants to use the land for a garden. 3. The land is only feet long. 4. The school must decide which is more important. This is a hard choice because both ideas are good, but the resource (the land) is scarce.
What is the best definition of scarcity?
If you choose to spend your only dollars on a movie ticket, what happens?
Time is a resource that can be scarce.
Review Tomorrow
Tomorrow morning, try to remember the 'S' word that means there isn't enough of something. Can you think of one thing in your house that is scarce?
Practice Activity
Next time you are at the store, look for a 'choice' you have to make. Ask yourself: 'If I buy this, what am I giving up?'