Please read and think about information below.
Resources are limited
Whenever a choice is made, something is given up.
The opportunity cost of a choice is the value of the best alternative given up.
Scarcity is the condition of not being able to have all of the goods and services one wants. It
exists because human wants for goods and services exceed the quantity of goods and
services that can be produced using all available resources.
Like individuals, governments and societies experience scarcity because human wants
exceed what can be made from all available resources.
Choices involve trading off the expected value of one opportunity against the expected value
of its best alternative.
The evaluation of choices and opportunity costs is subjective; such evaluations differ across
individuals and societies.
Choices made by individuals, firms, or government officials often have long-run unintended
consequences that can partially or entirely offset the initial effects of their decisions.
Different methods can be used to allocate goods and services. People, acting individually or
collectively through government, must choose which methods to use to allocate different
kinds of goods and services