๐ค The Big Economic Problem
Humans have unlimited wants but limited resources. This means we can't have everything we want โ we have to make choices.
Every choice has a cost: what we give up when we choose one thing over another.
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๐ฐ Economic Choices
Ngฤ Kลwhiringa ลhanga โ Making Decisions with Limited Resources
Key Economic Concepts
๐ Scarcity
Resources are limited. There isn't enough of everything for everyone to have as much as they want.
Examples:
- Time โ we only have 24 hours in a day
- Money โ pocket money or wages are limited
- Land โ only so much space on Earth
- Water โ fresh water is finite
โ๏ธ Choice
Because of scarcity, we must choose how to use our limited resources.
Examples:
- Spend $20 on a book OR save it
- Use 1 hour for homework OR gaming
- Eat the cookie now OR save it for later
๐ซ Opportunity Cost
The next best thing you give up when you make a choice.
Example:
If you spend $20 on a book, the opportunity cost might be the game you could have bought instead.
๐ Trade-offs
Giving up some of one thing to get more of another.
Example:
Spending more time on study means less time for play (and vice versa).
Wants vs Needs
โ Needs
Things you must have to survive and be healthy:
- ๐ Shelter (a safe place to live)
- ๐ Food and clean water
- ๐ Basic clothing
- ๐ฉบ Healthcare
- ๐ Education
- ๐ Love and belonging
๐ซ Wants
Things you would like to have but don't need to survive:
- ๐ฎ Video games
- ๐ฑ Latest phone
- ๐ฆ Treats and snacks
- ๐ Designer shoes
- ๐ธ Music lessons
- ๐ A car
โ ๏ธ The Tricky Part
Sometimes what's a "want" for one person is a "need" for another:
- A car might be essential if there's no public transport
- Internet access is increasingly needed for education
- A warm coat is a need in Dunedin, less so in Northland
โ๏ธ Activity 1: Want or Need?
Sort these items by putting โ in the correct column:
| Item | Need | Want | It Depends... |
|---|---|---|---|
| A warm jacket | |||
| Netflix subscription | |||
| School lunch | |||
| A bicycle | |||
| Smartphone | |||
| Tap water | |||
| Air Jordans | |||
| Going to the doctor |
๐ฟ Te Ao Mฤori: Different Economic Thinking
Manaakitanga and Collectivism
Traditional Mฤori economics focused on the wellbeing of the collective rather than the individual:
- Koha โ giving without expecting immediate return
- Manaakitanga โ hospitality; looking after guests and community
- Kaitiakitanga โ guardianship; protecting resources for future generations
- Reciprocity โ what you give comes back in different ways
Thinking Long-Term
Mฤori economic thinking often considers mokopuna (grandchildren) โ will this decision be good for those coming after us? This contrasts with short-term profit maximization.
๐ญ Scenario Practice
Scenario: The Birthday Money
You receive $50 for your birthday. You want:
- A new game ($45)
- To go to the movies with friends ($25)
- To save for a skateboard ($120 total needed)
Questions:
- Can you afford everything you want? (Scarcity)
- What choices do you have?
- If you buy the game, what is the opportunity cost?
- What would you choose and why?
My answer:
โ๏ธ Reflection
Think About It
- What's a choice you made recently? What was the opportunity cost?
- How do you decide between wants and needs?
- How does your family make decisions about spending money?
- Do you think it's fair that resources are scarce? Why or why not?
My reflection:
Key Takeaways
- Scarcity means there's never enough of everything.
- We must make choices about how to use limited resources.
- Opportunity cost is what you give up when you choose.
- Needs are essential; wants are nice to have.
- Different cultures have different ways of thinking about economics.
๐ฉโ๐ซ Teacher Notes
Curriculum Links
- Social Studies: Economic perspectives; resource allocation
- Mathematics: Financial literacy; budgeting
- Te Ao Mฤori: Manaakitanga, kaitiakitanga
Differentiation
- Support: Use visual sorting activities with pictures
- Extension: Research how governments make economic choices; explore sustainability economics