Title: Explain the relevance of scarcity to economics.
Course: Principles of Business and Marketing (12051-36) > Section: Understanding the Role of Economics in a Global Economy

Explanation should include the following concepts:

- Needs and wants are unlimited.
- Resources are limited.
- Humans must make choices that influence how resources are used to meet needs and wants.
- Every choice has a cost and/or a benefit.

Process/Skill Questions:

- What is scarcity?
- How does scarcity apply to economic resources?
- Why is scarcity considered the basic economic problem?
- How does scarcity effect individual financial decisions?
- How does scarcity effect international trade?
- How are scarcity and a shortage different?
- What are some examples of scarcity and shortages?
- How do you make personal choices between satisfying your wants and your needs?