Needs vs. Wants: Making Smart Choices with Your Money
6-8
1
Scarcity: Why We Can’t Have It All
Lesson Details
Duration (minutes)
1
Grade Level
6-8
Summary
This quick lesson introduces scarcity, the foundational economics concept that resources are limited while our wants are unlimited, forcing everyone to make choices. Using a simple money example ($20 for either a video game or shoes) and a government example (choosing between funding schools, roads, or hospitals), it shows why scarcity is the reason economics exists in the first place.
Student Worksheet: Scarcity
Teacher Note: Students can watch the video lesson above and answer the questions. Click the “Teacher Answer Key” dropdown below when you are ready to review the solutions!
Key Concepts:
• Scarcity: Resources are limited, but our wants are unlimited.
• Choices: Because of scarcity, we’re forced to decide how to use our limited time, money, and resources.
Instructions: Read each question carefully and write your answer in the space provided.
- Question 1: What does “scarcity” mean?
- Question 2: If you have $20 to spend on either a video game or new shoes, why can’t you buy both?
- Question 3: Give an example from the video of how governments face scarcity.
- Question 4: Why does the video say scarcity is “the reason economics exists”?
- Question 5: Think of a choice you’ve had to make because you couldn’t afford or have everything you wanted. Describe it.
Click to reveal Teacher Answer Key
1. Scarcity means resources are limited, but our wants are unlimited.
2. Because you only have $20 total, and spending it on one item means you don’t have enough left to also buy the other.
3. Governments must choose between funding schools, roads, or hospitals, since they can’t fund everything at once.
4. Because we can’t have everything we want, we’re forced to make choices about what matters most — which is the basis of economic decision-making.
5. Answers will vary; check that the student describes a real trade-off they made due to limited money, time, or resources.
Disclaimer: This worksheet was generated with AI assistance based on original video content. It is intended for educational reference only. Teachers are encouraged to review and adjust questions to fit their curriculum standards before classroom use.