Question

Given that resources are scarce, Multiple Choice 1. A "free lunch" is possible, but only for a limited number of people. 2. Opportunity costs are experienced whenever choices are made. 3. Poor countries must make choices, but rich countries with abundant resources do not have to make choices. 4. Some choices involve opportunity costs while other choices do not.

Answer 1

Answer:

Opportunity cost are experienced whenever choices are made

Explanation:

Scarce resources means the shortage or unavailability of resources required for production of goods and services . In fact economists believe that all resources are scarce because of the limit to the availability of factors of production involved in the production.

To manage scarcity , economist came up with the principle of opportunity cost.

Opportunity cost is the cost of the alternative forgone while making a choice.

This means that as a man may not be able to meet up with all his needs due to scarcity of resources , he will need to select the ones that are of utmost importance and forgo the other needs on the list , whichis the opportunity cost of the transaction.