Social Studies Economics - Bayport-Blue Point School District

Name Date ____________ Score ________
if! THINKING SKILLS
When VW meant “lital 3Iants”
Except for Volkswagenowners, most people could
havecaredless aboutemblemsfromthe frontof VWs. If
they had found one in the street, they probablywould
haveignoredit. Butthatchangedin the summerof 1987,
when singerMike Diamondof the BeastieBoyswore a
VWemblemon a neckchain.Then,Britishfansscurried
to find one for themselves.Thousandsof emblemssud
denlybegandisappearingfromVolkswagensthroughout
Britain. In orderto stopthe widespreadtheft,the British
importerof Volkswagensbegangivingawaythe emblems,whichnormallysold for about$10 each. Two
weeksafterannouncingitsgive-awayprogram,thecompanyhad received5,000mailedrequestsfortheem
•blems.(Adaptedfrom:PaulHemp,“It’sJustLuckyHe Doesn’tSportA VWSteeringWheelon Stage,”The
WallSrreetJournal,July29, 1987,21.)
1. Brieflyexplainwhythiseventillustratesscarcity:
2. MoreVWemblemswereavailableaftertheimporterbeganthe give-awayprogram. Despitethe greater
supply,theemblemswerestillscarcerthantheyhadbeenbeforeMikeDiamondwasspottedwearingone.
Whyweretheemblemsmorescarceeventhoughtheiravailabilityhadincreased?
3. Comparetheopportunitycostof purchasinganemblemfor$10andsuccessfullystealingonefroma VW.
Whobearsthecostin eachcase?
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4. “Becauseresourcesare scarce,the emblemgiveawayprogramdid not make them free.” Briefly
explainwhythisstatementis true.
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