Indiana Social Studies GE.1.2
The Standard
Define scarcity and explain how opportunity costs and tradeoffs exist.
2026 Indiana Academic Standards: K-12 Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students explain why limited time, money, or supplies force choices. They name what they give up when they choose one option over another. They identify the best option they passed up.
What Mastery Looks Like
- Given a choice between three uses for $20, a student can say what they can afford and what they must pass up. They can name their next-best choice and explain why giving it up is the cost of their decision.
Common Misconceptions
- Students may think scarcity only affects people with little money. They may assume a free activity has no cost, even if it uses time. They may list every rejected option as the opportunity cost instead of the next-best one.
How to Assess It
- Exit ticket: You have one free hour and must choose between studying, working, and seeing a friend. What is scarce, what will you choose, and what is the best option you give up?
Lesson moves
Ways to Teach It
Give groups 10 paper tokens and a menu of classroom supplies; have them choose purchases and name their next-best purchase.
Ask students to write: If our class spends its last $50 on books instead of markers, what do we gain and give up?
Post three after-school plans; have students pick one, cross out another, and circle the option they would choose next.
Compare a bus trip with a paid ride to school; have students name the time or money each choice uses.
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Printable GE.1.2 Worksheet
A ready-to-print activity worksheet aligned to GE.1.2, with an answer key for the teacher on its own page. No account needed.
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Related Standards
- E.1.4
Define scarcity, and explain how choices incur opportunity costs, utility, and trade-offs.
- 2.E.3
Define opportunity cost and explain that because resources are limited in relation to people’s wants (e.g., scarcity), people must make choices as to how to use...
- 3.E.1
Give examples from the local community that illustrate scarcity of resources and explain how scarcity requires people to make choices and give up other options ...
- 1.E.3
Explain that people must make choices about goods and services because resources are limited in relation to people’s wants (e.g., scarcity).
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