Question

Explain your opportunity cost of taking this course. When looking at the decisions that you have to make, are you more concerned on your lost time or money. Analyze the role of scarcity in your daily life

Answer 1

The opportunity cost refers to the value of only a single best alternative forgone, thus is the loss of other alternatives when one alternative is chosen.time spent with others can also be counted in opportunity cost. Scarcity refers to the inability to satisfy all human wants. The issue of scarcity reflects what we have to make a decision on how and what to produce from limited and valuable resources such as time and money as they are valuable and scarce. It means there is a constant opportunity cost involved in economic decisions making. Scarcity = lack of resources = need for resource allocation, thus an efficient resource allocation will lead to better growth of the economy. Thus, I will opt an activity that will provide highest returns using minimum possible money and time.

Scarcity is why we need to trade (anywhere) in the first place in your daily life. The more trade a economy have, the more productive are the society and an economy, both locally and globally.