Scarcity and Choice

fundamental economic concepts

limited availability of resources, such as time, money, and natural resources, to meet unlimited wants and needs

involves individuals and societies making decisions to allocate scarce resources for maximum satisfaction.

what you need for survival

the things that are good but unimportant for survival.

Who created the Hierarchy of Needs?

This level of need are human survival biological needs, such as air, food, drink, shelter, clothing, warmth, sex, and sleep.

This level of need is when a person’s physiological requirements are met, safety and security requirements become prominent.

This level of need motivates behavior because of the need for interpersonal relations.

This level of need is about respect or reputation prior to genuine dignity or self-esteem.

This level of need refers to the recognition of an individual’s potential, self-fulfillment, personal development, and highest experiences. This level is described as a desire to achieve everything you can and be the most.

This additional hierarchy of needs is about knowledge and understanding, curiosity, exploration, need for meaning and predictability.

This additional hierarchy of needs is about appreciation and search for beauty, balance, form, etc.

This additional hierarchy of needs is about a person motivated by values that transcend beyond the personal self.

The most exact and complete concept of cost. It is the cost that we must use in making decisions or analyzing the decisions made by other people.

This type of opportunity cost is everything you actually sacrifice in making the choice.

This type of opportunity cost arises from a different source: the scarcity of society’s resources.

discussing the constraints the society is facing by using a concept. This represents the maximum production of two goods in an economy, illustrating trade-offs and opportunity costs.

This factor that can shift a society’s PPF is about the improvements in technology, productivity and efficiency also improve making our PPF shift outwards.

This factor that can shift a society’s PPF is about the workers or employers gain knowledge or training to improve the productivity and efficiency of production, the PPF will shift outwards

This factor that can shift a society’s PPF is about the occurrence of a natural disaster affects the production, the PPF will shift inwards.