Scarcity implies that choices must be made.Making choices implies
A)the wasteful use of resources.
B)that scarcity can be eliminated.
C)the existence of costs of production.
D)the existence of opportunity costs.
E)both C and D above.

Question

Quizplus · Accepted Answer

Scarcity means limited resources and unlimited wants. When making choices, one must weigh the benefits and costs of each option, which leads to the concept of opportunity cost. Opportunity cost is the value of the next best alternative that must be forgone in order to pursue a certain action. Therefore, the best choice in a situation of scarcity is the one with the lowest opportunity cost.

Scarcity Implies That Choices Must Be Made