Lesson 1.

1 Scarcity NAME__________________________
This is the “homework assignment” for the lesson. It contains questions that you are to
answer as you do the reading for the lesson. The reading for this lesson is contained on
pages 4-8 in the Topic 1 Text. (LINK BELOW TO THE TEXT)

Scarcity Means Making Choices: Text

1. Categorize What are two examples of goods and two examples of services? (Do
not cite examples provided in the lesson.)

2. Draw Inferences What is an example of the kinds of choices that a business

would have to make because of scarcity?

3. Compare and Contrast  According to the lesson, scarcity is a problem that all
societies face. Is the same true of shortages? Why or why not?

4. Summarize  Use this chart to summarize the reading.

NECESSITY OF MAKING CHOICES

NEEDS AND WANTS RESOURCES
Definition

Examples

Limited/Unlimited?
Entrepreneurs Use Factors of Production: Text
5. Draw Inferences  What land resources are used by a company that produces
movies?

6. Vocabulary: Use Context Clues  Read the first paragraph of “The Effectiveness of
Capital.” What do you think productive means?

7. Draw Conclusions  Which of the three factors of production do you think is most
important to economic success? Why?

All Resources Are Scarce: Text

8. Summarize  How does scarcity force people to make economic choices?

9. Analyze Interactions  Describe how scarcity of time, money, or resources affected

a recent economic decision you made.