Scarcity+and+Choice

Scarcity is the principle of which people typically want more than is available. Scarcity limits us both individually and as a society. Our income, time and ability are all limited. As a society, limited amounts of machinery, labor, and manpower fix a maximum on the amount of goods that can be produced. Choice is the principle where people need to choose which desires they wish to satisfy. When there is both scarcity and choice, there comes a cost. For example, you reading this wiki page is costing you. You could be enjoying World of Warcraft on your computer.
 * Scarcity and Choice:**

Most of economics is based on the simple idea that people make choices by comparing the benefits of one option with the benefits of a different option. If you choose the first option than you will be ignoring the demands of the second option and vice versa. Fulfilling scarcity is impossible because humans have limitless wants so it's important to decide what is truly important. It's also good to think your decisions through when faced with a problem involving scarcity and choice so that you are happy with the product you choose and aren't left wishing you had the one you opted not to get. Scarcity and choice are basic groundwork for a lot of economic principles.

Example Problem: You have 300 dollars and you want to upgrade your entertainment situation. You can either buy an xbox 360 or an ipod. Because you are limited to 300 dollars you can only have one of the two. Which will you choose?

media type="youtube" key="_-lPxXHERJE" width="425" height="350" This video relates to scarcity and choice by introducing the option to sponsor a child. Let's say you don't sponsor a child for x dollars a month, you are putting a price on that childs life at x dollars.
 * World Vision Commercial (2007)**

Other Websites with information about Scarcity and Choice: http://tutor2u.net/economics/revision-notes/as-markets-scarcity-and-choice.html http://ingrimayne.com/econ/Introduction/ScarcityNChoice.html http://faculty.ed.umuc.edu/~shadjida/Lectures/basconc3.htm