1. SCARCİTY
Nevroz Gösterici

2. What causes scarcity?
1) Seemingly unlimited wants
2) Limited (Finite) Resources
Unlimited wants + Limited resources = SCARCITY

3. ECONOMICS
General economic theory = relies on
assumption that resources are limited
General Definition: Study of people
producing and exchanging to get the goods
and services they want. It is a social
science that describes and analyzes how
society chooses among scarce resources to
satisfy its unlimited wants.

4. BASIC ECONOMIC FLOW CHART
Unlimited Wants Limited
and Needs Resources
SCARCITY
? ? ?
?

5. FACTORS OF PRODUCTION
Resources =
Basic elements used to produce goods and
services.
1. Natural Resources
2. Human Resources
3. Capital Resources
4. Entrepreneurship

6. 1. NATURAL RESOURCES
- “Gifts of Nature”
- Air, sunlight, forests, earth, water and minerals are
all classified as land, as are all manner of natural
forces or opportunities not created by humans.
- Every tangible good is made of natural
resources…implications?

7. 2. HUMAN RESOURCES
 - “Labor”
 Taking natural
resources and
exerting human force
to fulfill our wants
and needs
 Converting Natural
resources to human
satisfactions

8. 3. CAPITAL RESOURCES
 Buildings, tools, and machines people
use to produce other goods and
services.

9. 4. ENTREPRENEURSHIP
 Imaginative thinking, willing to take
risks, and the management and
organizational skills needed to
operate a business

10. Three Fundamental Questions
1. WHAT TO PRODUCE?
Fruits and veggies?
Sugar Cane?
Manufactured Goods?

11. Three Fundamental Questions
2. How to produce?
Machines?
Workers?
Exploiting Children?
Exploiting Workers
Abroad?

12. Three Fundamental Questions
3.For whom to produce? Developing world?
Malnourished? Developed world?
Affluent societies?

13. Notice
Scarcity is not a Shortage!
 A shortage occurs when a good or service is not being
produced or offered in a given situation.
 It is not a permanent condition!
 It can be corrected as additional resources or
production becomes available.
 Scarcity is Permanent! Individuals will always want
more than they can have.

14. Thank you…