SS10.E.1
Explain why productive resources are limited and why individuals, businesses, and governments have to make choices in order to meet needs and wants.
Explain why productive resources are limited and why individuals, businesses, and governments have to make choices in order to meet needs and wants.
Unpacked Content
UP:SS10.E.1
Vocabulary
- scarcity
- opportunity cost
- trade-off
- marginal analysis
- marginal benefit
- marginal cost
- land
- labor
- capital
- entrepreneurial ability
Knowledge
Students know:
- Scarcity forces us to choose.
- All choices involve opportunity costs.
- Resources are necessary to produce goods and services.
- How marginal analysis leads to rational decisions.
- How to classify resources.
Skills
Students are able to:
- Calculate opportunity costs.
- Correctly determine whether a particular decision should be made based on the marginal costs and marginal benefits.
- Categorize examples of productive resources.
Understanding
Students understand that:
- Limited resources lead people to make choices.
- Marginal analysis leads to optimal decision-making.
