Question

Which of the following statements are correct?

Answer 1

Answer: C. . I and III

Explanation:

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.