Concept Note # B A. Basic Economic Problems A. Scarcity - is the fundamental problem of every society. It is the unlimited wants and needs, combined with the limited resources. o Creates difficult problems for society. Choices must be made. o Who makes the decision determines the economic system a society has. B. Poverty - is a multi-faceted concept, which may include social, economic, and political elements. It also the state of one who lacks a usual or socially acceptable amount of money or material possessions. Poverty is said to exist when people lack the means to satisfy their basic needs. C. Unemployment - is the situation of actively looking for employment but not being currently in the labor force. D. Infrastructure - is the term for the basic physical systems of a business or nation --- transportation, communication, sewage, water and electric systems are all examples of infrastructure. These systems tend to be high-cost investments and are vital to a country's economic development and prosperity. B. ANALYSIS: 1. What are the basic economic problems of the country? 2. How applied economics can be used to solve economic problems? C. ASSESSMENT: Performance Task # 1 (Framework-Making) 10 points > Construct your own diagram regarding the basic economic problems