Scarcity forces us to choose, and choices are costly because we must give up other opportunities that we value.

Question

Quizplus · Accepted Answer

This statement is true. Scarcity means that resources are limited and therefore we must make choices about how to allocate them. Every time we choose to use a resource in one way, we are giving up the opportunity to use it in another way, and this opportunity cost represents a cost of our choice.

Scarcity Forces Us to Choose, and Choices Are Costly Because