Activity 2 Directions: You may collaborate and communicate with your friends and family members in doing the tasks. Currently, we are dealing with scarcity on units of bicycles. Below is a framework showing the solution on how to deal with economic issues on meeting the products. Question: As an agent of the economy, how will you deal with this scarcity? Choices are given below. Place them in their proper columns as to economic growth; and improve the use of available resources and reduce expectations. Limited SCARCITY of - unlimited Resources goods and services wants ECONOMIZING PROBLEM (must make choices) society's 3 options for dealing with scarcity Economic Improve the use of Reduce Growth available resources Expectations http://www2.harpercollege.edu/mhealy/eco212i/lectures/5es/5es.htm ANSWER B) c) ability to produce goods and services; reduce our wants or lessening consumption; use our existing resources wisely; don't waste limited resources; productive efficiency; allocates efficiency; full employment and equity of resources; and reducing wants REMEMBER Economics can be a tool to solve economic problems on the production of goods and services. . Production is the process by which resources are transformed into useful forms. . Resources are things provided by nature that can be used directly or indirectly to satisfy human needs. The basic economic problems on production includes: what to produce, whom to produce, how to produce and what provisions on production for economic growth. . Strategic options/decisions to economize the problems include: economic growth - ability to produce goods and services; reduce expectation- reduce our wants - lessening consumption - reducing wants.; improve the use of resources - use our existing resources wisely; don't waste the limited resources; productive efficiency; allocate efficiency; full employment and equity of resources