EconomicsCode 9708
Scarcity, choice and opportunity cost
What this topic asks you to be able to do
- scarcity, seen as the fundamental economic problem
- the need for choices to be made at every level: by individuals, firms and governments
- the essence and definition of opportunity cost, which comes about through choice
- the core questions any system of resource allocation must settle: what to produce, how production is to be organised, and for whom to produce