● You are a producer who is hoping to create a specific good. Based on what you have learned about resources and scarcity, what factors do you need to consider when producing this good? Give your answer in the form of three to four complete sentences. If I was a producer that wanted to make a specific good, I would have to make many tough decisions. If I decide to use a more high end product, then people would be more likely to pay much more than if I used a lower value product. The more the source is scarce, people will be willing to increase their pay. ● What issue results from the combination of limited resources and unlimited wants? Scarcity ● Resources are things people use to make goods and provide services ● The resources used to create goods and services are divided into three main categories: land, labor, and capital. ● Trees, solar energy, and water are examples of: renewable resources ● According to the rules of economics, all resources are limited in their supply. The wants and needs of people are unlimited. ● The more scarce a resource is, the more people are willing to pay for it. The principle of scarcity forces people to more choices. ● Based on the information presented in this scenario, what can you determine about the copper piping? Copper is a scarce resource, which increases its value. ● In this scenario, what is the nonrenewable resource an example of? land