ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Opportunity Costs
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Trade Offs
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Either A or B
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None of the above
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Detailed explanation-1: -Trade-offs are all the alternatives that we give up whenever we choose one course of action over others. The most desirable alternative given up as a result of a decision is known as opportunity cost.
Detailed explanation-2: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services.
Detailed explanation-3: -Whenever a choice is made, something is given up. The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants.
Detailed explanation-4: -Opportunity Cost – the value of the benefits of the next best alternative that could have been chosen, but was not.
Detailed explanation-5: -Trade-offs are the alternatives people give up when they make choices. Trade-offs CREATE opportunity costs. Opportunity cost is the “value” of something that is given up to get something else they wanted. In other words, it is the next-best alternative.