Scarcity, Choice and Cost Chapter Eight Notes Part Two

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Scarcity, Choice and CostChapter Eight Notes
Part Two

• Scarcity, Choice and Opportunity Cost
• _______________, _______________ and
  __________________ are sometimes referred to as
  the basic trilogy of economics because of the
  strong interrelationships between these
  fundamental concepts.
• Decisions ...
• How many of you never seem to have enough time to
  do all of the things you want to do?
• Imagine for some reason you find yourselves with
  an hour of free time today that you did not
  expect to have.
• What might you do with this free time?
• LIST OF POTENTIAL ACTIVITIES
• Why cant you do all of these things?
• Because ________________________________________
  are limited!
• ________________________ is the condition of not
  being able to have ALL of
• the good and services one wants.
• Scarcity exists because there are never enough
  available resources to produce all the goods and
  services people want. ________________________exp
  eriences scarcity.

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Planning Hurons Next School Dance

• Your class has been engaged in various
  fund-raising projects during the past several
  years, and you now have a total of 9,635 to
  spend on a big bash your last school dance. You
  may not spend more than this amount on the dance,
  but you do not have to spend all of it on the
  dance. Any remaining money can be used for a
  class project, designed to help your school or
  community.
• You have decided that there are three categories
  of expenditures for the dance 1) Hiring a band
  or disc jockey, 2) renting a place to hold the
  dance, and 3) providing refreshments and
  decorations. A committee has provided the
  following information
• Music for the Dance
• Disk Jockey
• 1,000 Pig Sty cheap but good
• 2,000 Good Vibrations excellent music
  selections and sound system.
• Live Bands
• 2,500 Good Ol Boys good progressive country
• 4,000 Angelic Sinners good hard rock
• 5,000 Our Rage a popular group featuring rap
  and hip hop music
• 6,500 New Sensation nationally known group
  with chart success
• Places Available for the Dance
• 200 for the School Gym
• 600 for the American Legion Hall
• 1,500 for the Holiday Inn Banquet Hall
• 2,000 for the Hilton Hotel Banquet Hall
• 3,000 for the Barton Hills Country Club Dance
  Hall
• Refreshments and Decorations for the Dance
• 800 for School Service Club prepared sandwiches,
  chips etc.. With limited decorations.