BUSINESS AND

FINANCIAL LITERACY
9
 01
PRAYER
 02
ATTENDANC
E
 WORKPLAN

01 Prayer 02 Attendance

03 Business Trivia 04 Lesson Proper

 03
BUSINESS
TRIVIA
 04
LESSON
PROPER
BIG IDEA
Systems are structured to meet the needs and wants of
different societies
ESSENTIAL QUESTIONS
1. What is the relationship between scarcity, choice
and opportunity cost?
2. What are the four factors of production?
The Economic
Problem
➜ Unlimited Wants
➜ Scarce Resources
 Basic Economic Questions

FOR WHOM
WHAT TO HOW TO
TO
PRODUCE PRODUCE
PRODUCE
SCARCITY
 What is Scarcity?
➜ It is the state of being in short supply; shortage
➜ Scarcity refers to a gap between limited resources
and theoretically limitless wants. The notion
of scarcity is that there is never enough (of
something) to satisfy all conceivable human
wants, even at advanced states of human
technology
 FACTORS OF
PRODUCTION
Land Labor
Gifts of nature, not
People with all their
created by human
efforts, abilities and
effort.
skills.
Capital Entrepreneurs
Tools, equipment and
People who take
factories used to
risks in search of
produce goods and
profits.
services.
Opportunity
Cost
 Opportunity Cost
➜ The opportunity cost of something is that
which we give up when we make that
choice.
➜ The implication is that all decisions
involve trade-offs.
 How does opportunity
costs affect your
decisions?
➜ Because of scarcity, limited resources and people
unable to have all they want, economics involves the
study of trade-offs (choices).
Scarcity and Opportunity Cost
➜ Because of scarcity, we must make choices.
➜ With any choice, there are costs and benefits.
ESSENTIAL QUESTIONS
1. What is the relationship between scarcity, choice
and opportunity cost?
2. What are the four factors of production?
 THANKS!
Does anyone have any questions?
april_delizo@southville.edu.ph

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