1. Lesson 1 Economics EQ's
1. What is the difference between needs and wants, explain how scarcity is related to both and
affects decision making.
Needs are the things people have to have in order to survive while wants on the other hand is
basically everything else. Resources are needs and how much of a resource is available decides
the value of that resource. Most people in America have access to water for example which is a
need for survival. So to americans water isn’t something of high value. If you go to a third world
country where that need is hard to come by, the value skyrockets because people are competing
for the resources available and there isn’t enough for everyone. Things are relaxed and carefree
when a resource is plentiful but things can get nasty when it’s scarce because it becomes a matter
of life or death.
2. Explain why economics is called the science of decision making?
Economics is the science of decision making because economics is literally the game of choices.
You have to weigh your options to decide what resources and products you need and how much.
You have to decide what the value of each thing is to you. How much are you willing to pay or
give for that object. It’s all about decisions.
3. 3. Give 3 examples of home-life economic decisions and 3 examples of business economic
decisions.
Some simple economic decisions at home are things like when you go to the grocery store what
will you buy? Which brand of yogurt will you get? What’s the best deal? Shopping in general. If
I go to Target to get some new shirts, I want to leave with as many shirts as I can get for my 20
bucks. I could get one shirt, or maybe I could get 2 or 3 cheaper shirts. Which gas station will I
gas up at? Whichever one has the best gas for the cheapest price of course. Business decisions
are no different. It’s all about getting the best value. Everyone wants the best they can get for a
cheap as possible. This might mean you carefully select what paper you get. Or a bigger decision
such as which product you chose to invest in. You want the product that is going to give you the
highest chance of the best profit. You also have to make economic decisions when hiring people.
If I am looking to hire someone, I want to find someone who can do the best job for the cheapest
amount of money.
Tara Pawlyk Monday, March 11, 2013 1:13:35 PM ET 04:0c:ce:d3:10:88