Scarcity occurs when our want and the needs are more than the available resources that we have. In this case, we will then have to make a choice to be able to choose from the different alternatives that we have.
When we make a choice, the cost of the other alternative that we left is refered to as the opportunity cost. Therefore, the correct options are:
• The "highest-valued alternative given up to get something" is the opportunity cost.
• Scarcity creates opportunity costs
The statement that wealthy economies don't experience opportunity costs is wrong. Every nation experiences opportunity cost.
The 2003 United Nations Human Development Index reported that data collected in 2001 showed a 95.5% adult (15 and up) and 97.3% youth (15-24) literacy rate in The Bahamas.
