Economic Principle: Scarcity -- How it forces us to make choices which result in
ID: 1189473 • Letter: E
Question
Economic Principle: Scarcity -- How it forces us to make choices which result in opportunity cost.
Page 1 In your own words (don't quote the text), explain as completely as you can what an economist means by scarcity and opportunity cost.
How do the 2 concepts relate? Link them.
What do resources have to do with this?
Are scarcity and shortage the same? Explain.
What do economists mean when they cite opportunity cost and what's the connection between opportunity cost and scarcity?
Why does economic theory argue that we can't "have it all"?
Organization and a logical development is important. You cannot afford to use long winded examples here in the limited space. Choose your wording wisely
Explanation / Answer
Scarcity means less availability of resource in particular region, some countires have very less water supply so you can call them scarce. Oppurtunity cost is something that is incurred by doing some work or any work
The best example of oppurtunity cost is leisure, you can work in office but during that time you could rather go to beach and have sun bath. So cost of working in office is lost oppurtunity of going to beach.
Scarcity and oppurtunity costs are oddly related, We have scarcity in many things the best example is time.
If time is scarce then you are paying lot of oppurtunity cost. You miss your sons birthday because you were busy in your office. Time is scarce so it is related .
Resources have important role to play in scarcity. If there is scarcity of buses we will have to buy a car, To maintain car we have to go to service stations all the time. During this time you could have done something else.
Shortage and scarcity are not the same. Shortage is short term. During to cyclone fuel shortage has happend, but after cyclone is gone fuel will come back. Scarcity is sort of permanent. You always will have scarcity of water in sahara desert
Yes we cant have it all, You cannot go to himalayas and relax if you are busy in your job, You cannot have free time while you work for a regular job.
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