Module 1: Economic Systems in Canada and the United States
Section 1: Market and Mixed Economies
Lesson 2 - Introduction: Market Economy (ch 6)
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The first day of fall is fast approaching and you have earned enough to go and purchase a new spring coat. All of your friends have been talking about the new style of coats that are in style right now.
You anxiously wait for the weekend when you have planned to go with your friends and spend a day at the mall shopping and, of course, purchasing that special jacket. However, Saturday arrives, and the mall is jam packed. There are lineups at the cash register, and you arrive just in time to see the last jacket removed from the rack. You are informed that the jackets are sold out. There is not a store in the mall that has any jackets of that style left. As a matter of fact, every store in town has sold out of the jackets. The supply of jackets was not enough for the demand. The wants were more than what was available. This kind of problem happens every day. It is called scarcity. Scarcity comes from the word scarce, which means it isn’t always available. Because the demand for the jackets was greater than the supply, the jackets were scarce.
Scarcity happens when peoples’ needs and wants are not met because there is a shortage or lack of a desired good or service.
supply: how much of something is available
demand: how much of something that people want
scarcity: in economics, the idea that land, labour, and capital limit the supply of what people want and need; limited resources and unlimited wants
Retrieve your Issues for Canadians Definitions handout from your Portfolio. You may need to print out a new handout from here. Include the terms supply, demand, and scarcity, and write a definition for each new word. Save your handout, as you will include more terms as you progress through this lesson.
You anxiously wait for the weekend when you have planned to go with your friends and spend a day at the mall shopping and, of course, purchasing that special jacket. However, Saturday arrives, and the mall is jam packed. There are lineups at the cash register, and you arrive just in time to see the last jacket removed from the rack. You are informed that the jackets are sold out. There is not a store in the mall that has any jackets of that style left. As a matter of fact, every store in town has sold out of the jackets. The supply of jackets was not enough for the demand. The wants were more than what was available. This kind of problem happens every day. It is called scarcity. Scarcity comes from the word scarce, which means it isn’t always available. Because the demand for the jackets was greater than the supply, the jackets were scarce.
Scarcity happens when peoples’ needs and wants are not met because there is a shortage or lack of a desired good or service.
supply: how much of something is available
demand: how much of something that people want
scarcity: in economics, the idea that land, labour, and capital limit the supply of what people want and need; limited resources and unlimited wants
Retrieve your Issues for Canadians Definitions handout from your Portfolio. You may need to print out a new handout from here. Include the terms supply, demand, and scarcity, and write a definition for each new word. Save your handout, as you will include more terms as you progress through this lesson.
In this lesson you will examine this question:
What does scarcity mean to me, and how do the economic systems of Canada and of the United States differ in answering the basic question of scarcity?
What does scarcity mean to me, and how do the economic systems of Canada and of the United States differ in answering the basic question of scarcity?
Assignment
This lesson should take approximately 2 periods to complete.
You will need this activity for your section and module challenge. Store the completed activity in your Portfolio.
You will need this activity for your section and module challenge. Store the completed activity in your Portfolio.
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