MYP Individuals & Societies Scarcity Notes

How Are Choices Forced When Wants Are Unlimited?

1. Even when a resource seems abundant, it is still finite when compared with what people could potentially use.
2. This is the central idea of scarcity.
3. Where poverty is a condition where people lack sufficient income or access to essentials, scarcity is broader.
4. It exists in every society, including wealthy ones, because there is always a limit to time, labour, materials, and technology.

Opportunity cost is the price of choosing

1. Because we can't do everything, every decision has an opportunity cost.
   1. If a government spends more on road-building, it may have to spend less on healthcare.
   2. If a firm uses steel to make cars, it cannot use that same steel to make trains.
2. Opportunity cost matters because it makes choices visible.
3. It encourages better questions, such as:
   1. What are we giving up?
   2. Who benefits and who loses?
   3. Are we using resources in a way that matches our priorities?

What Are Factors of Production?

1. They are essentially the inputs scarcity limits.
2. The four factors of production are: