Objective: To understand the fundamental economic concepts of scarcity, opportunity cost and the factors of production through real-life applications.

Instructions:

Scarcity and Choices:

• List down five items they use daily which are scarce resources.
• For each item, you have to write a paragraph of 50-80 words on why it is considered scarce and the choices they have to make because of its scarcity.

Opportunity Cost:

• Think of a recent decision they made where they had to choose between two options.
• Write about the option you did not choose and explain it as the opportunity cost of your decision.

Factors of Production:

• Select a local business and identify the four factors of production (land, labor, capital, entrepreneurship) used by this business.
• Write a brief report of 250 words on how these factors contribute to the production of goods or services by the business.