Scarcity, Choice and Opportunity Cost
- Created by: Liv0912
- Created on: 01-04-16 14:01
View mindmap
- Scarcity, Choice and Opportunity Cost
- Scarcity and Choice
- Scarcity and unlimited wants make us make choices
- If we continue to overfish, future generations will not be able to take fish from the sea at all
- Individuals need to choose how to use their limited income in order to purchase goods and services
- Governments also have scarce resources, need to make decisions on how to use tax revenue. Increased spending on NHS means decreased spending somewhere else
- Opportunity Cost
- The next best alternative forgone
- It means we have to make decisions about the best use of time, money and resources
- Scarcity and Choice
Comments
No comments have yet been made