1. List some examples of the scarcity that you face. Examples of scarcity common to students include not enough income to afford both tuition and a car, not enough learning capacity to study for both an economics exam and a chemistry exam in one night, and not enough time to allow extensive studying and extensive socializing. 2. Find examples of scarcity in today’s headlines. A headline in the National Post on May 5, 2014 was “Porter Airlines to charge passengers first bag fee starting May 14.” Porter Airlines plans to charge between $25 and $28.25 for the first checked bag. Scarcity is our inability to satisfy all our wants. With the bag fee, a passenger faces scarcity because she has less money to satisfy other wants. Without the fee, Porter Airlines faces scarcity because it will be unable to offer other services. 3. Find an example of the distinction between microeconomics and macroeconomics in today’s headlines. Microeconomics: On May 5, 2014, a headline in the National Post was “Check your gambling: Canadians betting $210-million on NHL playoffs.” This story covers a microeconomic topic because it discusses choices made by individuals and their gambling responses to the NHL playoffs. Macroeconomics: On May 5, 2014, a headline in the National Post was “Canadian dollar seen sliding below 80₵ by Mark Carney’s protégé.” This story covers a macroeconomic topic because it concerns the effect of the Canadian and world economy on the Canadian dollar. Page 7 1. Describe the broad facts about what, how, and for whom goods and services are produced. What we produce varies over time. In Canada today, services account for 78 percent of production, manufactured goods for 20 percent, and agriculture for 2 percent. What we produce also varies over countries. Agriculture and manufacturing are small percentages of production in rich countries and large percentages of production in poorer countries. How goods and services are produced is by businesses determining how the factors of production, land, labour, capital, and entrepreneurship, are combined to make the goods and services we consume. Land includes all natural resources, both renewable natural resources such as wood, and nonrenewable natural resources such as natural gas. The quality of labour depends on human capital. In Canada in 2013, 25.3 percent of the adult population had a university degree, a further 39 percent had some post-secondary education, and 93.6 percent had completed high school.