Decision-Making and Scarcity

Introduction

• Discussion about the empty lot next to the school, visible from the classroom window.
• The school owns the land.
• Importance of deciding how to use the lot.

Scarcity and Decision-Making

• Definition of Scarcity: Limited resources to fulfill all wants.
  • Example: Limited land to provide both parking and playground.
• School Board Decision: Chose to expand playground over providing more parking.
  • Opportunity Cost: Giving up additional parking space for larger playground.

Playground Planning

• Problem: Deciding what equipment to include in the new playground.
  • Suggestions from students include:
    • Swings
    • Slides
    • Climbing ropes
    • Basketball hoop
    • Bridge
    • Seesaw
    • Monkey bars
    • Tubes
    • Sandbox
    • Merry-go-round
    • Four-square court
• Challenge: Unlimited wants vs. limited space (scarcity).

Measuring and Planning

• Steps to Plan the Playground:
  • Measure the area of the land.
  • Determine space requirements for each playground item.
  • Use information to assess which items can fit.

Understanding Scarcity in Choices

• Concept Reinforcement:
  • Scarcity requires choices.
  • Choices involve trade-offs (opportunity costs).
  • Resources are limited, hence not all wants can be satisfied.

Conclusion

• Students' ideas influenced the final playground design.
• Emphasis on understanding scarcity and decision-making.
• Encourages further learning through videos or visiting educational sites like stlouisfed.org.