Scarcity, Choice and Opportunity Cost

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  • Created by: Liv0912
  • Created on: 01-04-16 14:01
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  • 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

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