Scarcity

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Scarcity
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Grade 1
3
Every Society Faces Scarcity.

• Unlimited wants
• Limited resources

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Unlimited Wants

• Individual
• Community
• State
• Nation
• World

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Opportunity Cost
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Grade 3
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Grade 3
8
Choices Must Be Made

• Every choice involves an opportunity cost.
• The opportunity cost is the second best
  alternative - - not everything you might think of.

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Opportunity Cost Practice

• Tom Pappitos 500 bonus check can be used to buy
  a new suit, a set of new tires, or an air ticket
  to Las Vegas.
• Jenny would like to sleep late on Saturday but
  she knows she should sing with her class at a
  nursing home or help her mother with grocery
  shopping.

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Opportunity Cost More Practice

• Ms. Johnson--the school principal--has money for
  a new volley ball set, computer software, or to
  repair the copy machine.
• Mayor McCoy has enough tax revenue to hire one
  additional police officer, keep the recreation
  center open longer on weekends, or install a new
  traffic signal.

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Entrepreneurship
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Grade 1
13
The Importance of Being an Entrepreneur

• Most people with a net worth of a million dollars
  or more consider themselves to be entrepreneurs.
• The American economy never stands still
• New goods and services are created.
• Others are being destroyed.
• New people rise to the top.

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What Is an Entrepreneur?

• Schumpeter described creative destruction as
  the process in which the old ways of doing things
  are unexpectedly destroyed and replaced by new
  ways.
• Entrepreneurs assume the risks involved to
  undertake a business venture.
• They might also be seen as passionate experts
  rather than high risk takers.

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Community Stories

• Children interview local business people.
• What goods and services to you provide?
• What steps were involved in getting started?
• How many customers to you have?
• How many employees do you have?
• What do you like best about being an
  entrepreneur?
• Reports are written, edited and published.
• Reports become books sold by local businesses.

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Saving
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Grade 1
18

Grade 2
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Grade 2
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Activities

• Field trip to a bank.
• Compounding interest versus simple interest.
• Compound Interest calculator ncee.net