Applying Economic Concepts Consider the following entrepreneurs: Lucy, who runs an

Explain the relationship between the terms in each of these pairs: a. wants scarcity c. factors of production entrepreneurship b. consumer producer

What is the difference between needs and wants? Explain how a need may also be a want.

How does scarcity affect consumers? Producers?

What services that individuals or businesses provide do you use every day?

Describe how the owners of a computer repair store might use the four factors of production to run their business.

Using Your Notes How does scarcity affect methods of production? Refer to your completed cluster diagram.

Drawing Conclusions Many high schools throughout the United States have faced a serious shortage of math and science teachers. Many prospective teachers choose to go into business and industry because of higher salaries. In some communities, businesses are loaning employees who want to teach part-time to schools to fill the math and science teacher gap. Does this scenario illustrate scarcity? Why or why not?

Applying Economic Concepts Consider the following entrepreneurs: Lucy, who runs an organic farm, and Ron, a sports superstar who owns several restaurants. Describe how they may have used entrepreneurship to establish and run their businesses.

Writing About Economics Select a 10-minute period of time in your day-to-day lifewhen you are in the cafeteria at lunchtime, for example. Analyze how scarcity affects your activities during this time period. Write your analysis in a paragraph.

Challenge At one time or another, you have probably made a choice about how to use your scarce resources that you later regretted. For example, you may have purchased a music download instead of going to the movies. What led you to your choice? What did you learn later that might have led you to a different choice?

Challenge Study Figures 6.4, 6.5, 6.6, and 6.7 again. What would happen if a change in consumer taste caused an increase in demand for athletic shoes and more suppliers entered the market at the same time? Assume that the increases in demand and in supply are proportionately the same. How would this result be different if each of these changes happened separately?