Throughout the day, we have to make thousands of decisions. Most of the time, we make them so quickly that we do not even think about their consequences.
‘PROS & CONS’ – Discuss in pairs and afterwards make a decision together.
In the three examples above, it has become clear that all resources are scarce because they are limited and will eventually run out. Think of something that seems to you to be everlasting, and you are sure to find that it has an expiry date, even if it is a long way off. Therefore, ECONOMIC SCARCITY does not mean that someone lacks the basic necessities for survival. Instead, it refers to the feeling that, no matter how much money and time we have, we will not be able to have everything we would like. We will therefore have to choose how to spend our time and money so that we can be as happy as possible.
Like other academic disciplines, Economics tries to explain reality by using what is known as the SCIENTIFIC METHOD. However, its predictions are unlikely to be completely accurate because human behaviour is often changeable and irrational. There are two methods used to formulate theories:
DOES SCARCITY EXPLAIN THE DIFFERENCES IN ATHLETES’ SALARIES?
ARE RICH PEOPLE COMPLETELY HAPPY, OR DO THEY HAVE UNSATISFIED NEEDS?
Alternatives and choice
<Write your answers to these questions individually in your notebook. >
1. ¿What advantages and disadvantages would you have if you came to school by bike? (Put the positive and negative reasons in two separate columns.)
2. Write a concluding sentence describing the need you want to meet, the resources you have and the alternatives you considered before making your choice.
< We compare our answers as a whole class and see how a small decision can change your life and the lives of others forever. >
6.4. Critically assess the economic problem of scarce resources and the need to make choices, as well as the principles of social interaction from an economic perspective, applying this knowledge to deal effectively with challenges.
