What is Economics?: Scarcity and factors in production
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- Prudence George
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1 What is Economics?: Scarcity and factors in production
2 OBJECTIVES: Chapter 1:1 o We will examine scarcity and choice are the basis of economics. o We will describe what entrepreneurs do. o We will define the three factors of production and the differences between physical and human capital. o We will explain how scarcity affects the factors of production.
3 Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed? (For after all these things do the Gentiles seek:) for your heavenly Father knoweth that ye have need of all these things. But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you. Matthew 6:31-33.
4 How do you spend your money? What do you spend most of your money on? (list 3) What is something you are willing to save more for and why? What are some things you believe you spend money on that you believe that you should stop buying?
5 Economics is the study of how individuals, businesses, and governments make choices when faced with a limited supply of resources.
6 Scarcity and Choice The study of economic begins with the fact that people cannot have everything they need and want. A Need is something essential for survival such as food or medical care.
7 But my God shall supply all your need according to his riches in glory by Christ Jesus. Philippians 4:19
8 Discussion Question What are five essential needs that are necessary and explain why?
9 He who has given his life to God in ministry to His children is linked with Him who has all the resources of the universe at His command. His life is bound up by the golden chain of the immutable promises with the life of God. The Lord will not fail him in the hour of suffering and need. "My God shall supply all your need according to His riches in glory by Christ Jesus." Philippians 4:19. And in the hour of final need the merciful shall find refuge in the mercy of the compassionate Saviour and shall be received into everlasting habitations. {MB 24.1}
10 Perhaps it appears that obedience to some plain requirement of God will cut off his means of support. Satan would make him believe that he must sacrifice his conscientious convictions. But the only thing in our world upon which we can rely is the word of God. "Seek ye first the kingdom of God, and His righteousness; and all these things shall be added unto you." Matthew 6:33. Even in this life it is not for our good to depart from the will of our Father in heaven. When we learn the power of His word, we shall not follow the suggestions of Satan in order to obtain food or to save our lives. Our only questions will be, What is God's command? and what His promise? Knowing these, we shall obey the one, and trust the other. {DA 121.2}
11 Scarcity and Choice Want: Is something that we desire but that is not necessary for survival.
12 Discussion Question What are five wants that people crave that are not necessary.
13 Scarcity and Choice And the LORD God commanded the man, saying, Of every tree of the garden thou mayest freely eat: But of the tree of the knowledge of good and evil, thou shalt not eat of it: for in the day that thou eatest thereof thou shalt surely die. Genesis 2:16-17
14 Scarcity and Choice And when the woman saw that the tree was good for food, and that it was pleasant to the eyes, and a tree to be desired to make one wise, she took of the fruit thereof, and did eat, and gave also unto her husband with her; and he did eat. Genesis 3:6.
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16 The Problems of Limits: People s needs and wants are unlimited. When one want is satisfied, others arise. Goods and services are limited. No one can have an endless supply of anything. Sooner or later a limit is always reached. The fact that limited accounts of goods and services are available to meet unlimited wants is scarcity. Economics is the study of how people seek to satisfy their needs and wants by making choices.
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19 (1Co 9:25) And every man that striveth for the mastery is temperate in all things. Now they do it to obtain a corruptible crown; but we an incorruptible.
20 By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce. Within five years of retirement, an estimated 60% of former NBA players are broke. How (and Why) Athletes Go Broke, Sports Illustrated, 2009
21 Discussion Question Give three examples of products or resources that are scarce and explain why they are scarce.
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23 Discussion Question Who is an entrepreneur you have seen recently that has impacted the economy and explain why he or she is significant
24 (Pro 13:4) The soul of the sluggard desireth, and hath nothing: but the soul of the diligent shall be made fat. Every man, woman, and child should be educated to practical, useful work. All should learn some trade. It may be tentmaking, it may be some other business, but all should be trained to use their powers to some purpose. And God is ready to increase the capabilities of all who will educate themselves to industrious habits. We are to be "not slothful in business; fervent in spirit; serving the Lord." God will bless all who will guard their influence in this respect. --R. & H., March 13, 1900.
25 Scarce Resources: All goods and services are scarce because the resources used to produce them are scarce. For example: There are limited amount of Thai and Korean restaurants because there is only a limited number of people that can cook that kind of food.
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