Activity 2.4 Scarcity and Opportunity Cost

Activity 2.4
Scarcity and Opportunity Cost

Upon completing Activity 2.4, you should be able to:

Describe what scarcity and opportunity costs are and how they impact the economic decisions that you make.
Identify the four "factors of production" and give examples of each.
You will need to have read the Introduction of Ben & Jerry's Double Dip to successfully complete activity 2.4.

PART 1:
WHAT TO LOOK FOR:

As we have already learned, economics is the study of how we attempt to overcome scarcity. Scarcity forces us to make decisions and trade-offs, which result in an opportunity cost. These words may be new to you now, but after viewing the essential terms in the book below you should become familiar with what these words mean and how they affect you. As you view this website, it would probably be wise to take some notes on how scarcity affects our decisions and what the concept of opportunity cost refers to.

WHERE TO FIND IT:
Use the following link to learn more about the definitions of scarcity and opportunity costs.
Be sure that you take notes on each of these terms as you will need them to complete this activity.

PART 2:
WHAT TO LOOK FOR:
Resources are the basic elements that are used to produce goods and services. Earlier in Module 2 we identified the 4 major resources, also known as factors of production. Because you will need to utilize this information for your assignment in this activity, it would probably be wise to go back and review that information at this time.

WHERE TO FIND IT:
Land, Labor, Capital, and Entrepreneurship. This one image could depict all four.

To review these factors of production, click on the picture.

PART 3:
PUTTING IT ALL TOGETHER - REQUIREMENTS FOR YOUR ASSIGNMENT...

Scarcity, Opportunity Cost, Factors of Production, and your reading of Ben & Jerry's Double Dip, the Introduction; now that you have been exposed to all of these, it is time for you to demonstrate your understanding.

WHERE TO FIND IT:
Here are a series of questions and problems for you to work through.

Don't forget to keep copies of your work.

	Activity 2.4 Scarcity and Opportunity Costs 100 Points Go to the Assignment Area to submit this assignment.
	1. Read the above Requirements 2. Submit this activity . You may type your text directly into the assignment or create your essay in a separate program such as Microsoft Word and then attach it.