Scarcity

2. Scarcity – “More noms plz.”

At any moment in time, there is a limited amount of cookies in existence. Economists study what to do given the fact that there is a finite amount of noms to go around.  Many of the problems humans face can be explained in terms of “scarce resources.”

GDPSpike

“allocation of scarce resources” –What is the best use of the limited amount of noms we have?

There will always be a finite amount of stuff, but in the last 150 years the total size of the human economy has grown. Pretty incredible ->

GDP per capita is a rough measure of how much stuff the average person is producing (and therefore consuming) in a year.

The “economic pie” is a term for how much stuff there is to go around in a society. The economic pie has grown significantly in the past few centuries. So a lot of people have more healthcare, shoes, and most importantly cookies.

Economic Pie

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