ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -Our needs and wants will always exceed or outstrip our resources. The statement is indeed false. The scarcity problem arises because our needs and wants are unlimited.
Detailed explanation-2: -Scarcity. The condition in which our wants are greater than the resources available to satisfy them.
Detailed explanation-3: -Scarcity exists because we have limited resources and unlimited wants. No society has ever had enough resources to produce all the goods and services its members wanted. Because of scarcity, all decisions involve costs.
Detailed explanation-4: -Opportunity cost is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.
Detailed explanation-5: -“Scarcity” always exists because our needs and wants are always greater than our resource supply.