Scarcity Leads to Tradeoffs (Resources (Small amounts (Small amounts of…
Scarcity Leads to Tradeoffs
Small amounts of things in large amounts of items starts to add up.
Example: Apple puts tiny amounts of gold (A scarce element) in their iPhones. Though the amount of gold they put in each phone is very miniscule the number of phones they produce is very large. So overall they use a large amount of gold in their phones.
Everything is made out of something
What do we use our resourcse for?
This is decided by the people with money
People make squirrly decisions
Resources are limited
We must make choices of what to do with those resources
Those choices have tradeoffs
Tradeoffs must be made
Who makes the decisions?
This is determined by economics
Producers and Consumers
Producers are affected by scarcity
Scarcity in resources
Limit to how much they can produce
Limits to what they can produce
Decision of what to produce
All about tradeoffs
Example: If a company like Coca-Cola only has one factory they must choose between producing soda or water. If the company produces water they cannot produce soda. They will satisfy the people that want water but not those who want soda.
Consumers are affected by scarcity
Supply an demand
This is because producers have to make decisions of what to produce
What to buy?
Rare Earth Minerals
Every resource is limited because we live on Earth
Money is how we determine the distribution of resources
Money is a resource which means there is never enough
Going Bankrupt due to overspending
Lottery winners 80-85% go bankrupt with in 5 years
75-80% of NFL players go bankrupt after retiring