SSEF1 The student will explain why limited productive

resources and unlimited wants result in scarcity, opportunity

costs, and tradeoffs for individuals, businesses, and
governments.

a. Define scarcity as a basic condition that exists when

unlimited wants exceed limited productive resources.

b. Define and give examples of productive resources (e.g., land

(natural), labor (human), capital (capital goods),
entrepreneurship).

c. List a variety of strategies for allocating scarce resources.

d. Define opportunity cost as the next best alternative given

up when individuals, businesses, and governments confront
scarcity by making choices.
SSEF4 The student will compare and contrast
different economic systems and explain how they
answer the three basic economic questions of what to
produce, how to produce, and for whom to produce.

a. Compare command, market, and mixed economic

systems with regard to private ownership, profit
motive, consumer sovereignty, competition, and
government regulation.

b. Evaluate how well each type of system answers the

three economic questions and meets the broad social
and economic goals of freedom, security, equity,
growth, efficiency, and stability.
 Basic Concepts Mixer Review
1. Define economics in your own words.
2. What 2 things must exist for economist to
consider something scarce?
3. What is the basic problem of economics?
4. Define allocate.
5. In your own words, explain the GPS we are
currently studying.
 Methods of Allocation
A. Lottery- by chance
B. Barter- exchange one good or service
(G/S) for another
C. Traditional Economic System: long
standing customs/ beliefs (religion)
dictates how resources will be
allocated.
D. Command Economic System:
(government, boss, the strongest)
1. gov’t controls production & makes
all economic decisions
2. gov’t = dictator, one party, small
group, central planning
committee
Can you name the five communist
countries left in the world today???
 RULES
• RAISE HAND & WAIT TO BE CALLED
ON (totally voluntary)
• SMALLEST INCREMENT IS 5 CENTS
• ONLY USE OWN $$$ & CANNOT POOL
• DON’T BID IF CAN’T PAY
• ALL SALES FINAL
• WE KEEP YOUR $$$$, YOU KEEP &
EAT THE BLOWPOP IN CLASS
Grape Sour Apple
Cherry Watermelon Strawberry
E. Market, Capitalist, Free Enterprise
System
1. to the highest bidder
2. Individuals (not gov’t) own resources
and make economic decisions
F. Mixed Economic System:
In reality, all economic systems today
are some combination of command
and capitalist allocation
 Place the following on the
spectrum:
USA, China, Russia, Germany, Cuba,
France, North Korea, Great Britain,
Sweden

Socialism Communism
Capitalism

Command
Market Mixed System
System System