Shop On-Demand Videos

Scarcity, Choice, Opportunity Cost


Category: Tag:

Scarcity, choice and opportunity costs

Opportunity cost is the cost of any action or decision measured in terms of the highest valued alternative foregone.

The central economic problem all societies face is the problem of scarcity. Scarcity is a situation in which available resources are unable to produce enough of the goods and services that people desire to satisfy all their wants. In short, there are limited resources to satisfy unlimited wants.

Due to the problem of scarcity, every time a choice is made to use a resource for a particular purpose, it means that the opportunity of using it
for some other purpose is lost. In other words, there is a sacrifice of alternatives as other wants cannot be satisfied. Hence, an opportunity cost is incurred.

The PPC shows all the maximum possible combinations of consumer goods and capital goods that a country can produce within a specific
period of time with all its resources fully and efficiently employed and a given state of technology.

Video Duration: 1 hour 30 minutes

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the copyright owner.
The material in this publication may include inaccuracies or typographical errors. Changes may be periodically incorporated into this publication. JC Economics Education Centre Pte Ltd may make improvements and/or changes in the material in this publication without any notice.
This publication is provided “as is” without warranty of any kind, either expressed or implied, including but not limited to implied warranties of fitness for a particular purpose.
Neither JC Economics Education Centre Pte Ltd nor its staff warrant or make any representations regarding the use or the results of or from use of the materials or information in this publication, or the accuracy, adequacy, completeness, legality, reliability, or usefulness of the material in this publication.
WhatsApp Us