• A consequence of scarcity is that people must
make choices and compete for resources.
– Resources (human, natural, capital) are needed to
produce goods and services.
• A rationing device is a way of determining who
gets what and how much.
– Price is a common rationing device.
• As you watch the clip from Titanic, write down
examples of scarcity, rationing devices and
opportunity costs.
• With your partner, discuss the following questions and
record your thoughts:
1. What are the scarce goods and how are they rationed
among the passengers?
2. As the Titanic begins to sink, how does “life or death”
scarcity change the way goods are rationed among
passengers?
3. The cruise line chose not to have enough lifeboats for all
the passengers. Using your knowledge of the movie,
explain the opportunity cost of having the extra deck space.
4. Identify the rationing devices used in the following scenes
from Titanic:
–
–
–
–
The tickets Jack and his friend obtain to board the Titanic
First class luxury seats
Boarding lifeboats in the early stages of the disaster, when people
are unaware of, or ignored, the coming dangers.
Boarding lifeboats after the passengers were aware that the ship
was sinking rapidly and there were too few lifeboats.
• Cost v. Benefit – a person will do whatever
he is considering only if the benefits are
greater than the costs
• Trade off – more of one thing means less
of something else
• Effective decision making requires
comparing the additional costs of
alternatives with the additional benefits.
• Most choices involve doing a little more or
a little less of something: few choices are
"all or nothing" decisions.
• A situation in which more
of one thing means less
of something else.
– Ex. If a country spends
more on national defense
than it will have less to
spend on health care or
education.
what did happen
what would have been
Family Man
intended
action
effects
positive
unintended
negative
• Read 1.2
• Answer the following questions at the end
of section. #1,3,5,7
• Fill in the chart w/ details from Titanic or
Another movie of your choice
Thinking in terms of:
Costs & Benefits
Trade-offs
What would have been
Unintended effects
Global economy
Micro/Macro
Example of this type of
thinking: