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What is the basic economic problem? The fundamental economic problem is the issue of scarcity and how best to produce and distribute these scarce resources. The problem arises from the fact that there is a limited supply of goods and raw materials to meet unlimited wants. This means that people would like to consumer more than it is possible to produce (scarcity). What is the fundamental economic question? Therefore because of scarcity,…

Directions: read each scenario and decide what you would choose. Identify the trade-off(s) and opportunity cost(s) of your choice. Scenario: What would you choose? Trade-Off(s): Opportunity Cost(s): Reeta can use her time after school to play soccer or to work at a part-time job. Madison can go on a church camp or work at the local supermarket during the holidays…

Scenario The government has been advised by the Minister for Health that there are not enough hospitals, cancer treatment centres and practising health consultants in regional areas to cope with number of patients currently seeking medical help for allergies, flu and cancer. They are advised that they need to spend another $5 million on these health services.   The government does not want to borrow money or sell assets, so it has to make a…

Scenario The government has been advised by the Minister for Health that there are not enough hospitals, cancer treatment centres and practising health consultants in regional areas to cope with number of patients currently seeking medical help for allergies, flu and cancer. They are advised that they need to spend another $5 million on these health services.   The government does not want to borrow money or sell assets, so it has to make a…

  Linked activity: Who provides the goods and services I need and want

If you’re in the market for a new phone, you can buy it outright or on a plan. Buy outright – You pay the full cost of the phone upfront, then choose a prepaid plan for calls, text and data. This option costs more initially but makes it easier to switch plans or providers when you want. Buy on a plan – You sign a contract and are billed monthly, spreading out the cost of the phone. On a plan, you pay for your phone, any monthly usage (…

Luna’s phone is broken, so she’s in the market for a new one. She currently owns her own phone and has 2 options to replace her phone. Both options are for the same phone: Buy the phone outright and continue with her pre-paid plan. Her current pre-paid plan costs $30 for 4 GB of data. Luna often runs out of data before the 30 days is up, and typically has to buy an additional 30 days of credit each month. Buy the phone on a plan that will cost…

  Linked activity: Strategic thinking skills of entrepreneurs – SWOT analysis