Final answer:
Scarcity is a concept in economics that refers to having limited resources but unlimited wants. Decision making under scarcity involves choosing between alternatives and giving up some opportunities. It is a common problem that people face in their daily lives.
Step-by-step explanation:
Scarcity is a concept at the center of economics. It refers to the condition of having limited resources but unlimited wants. This means that we often face the problem of making decisions under scarcity, as we need to choose which alternatives to pursue and which ones to give up. For example, if we choose to spend our money on buying a new phone, we may have to give up the opportunity to invest in a new computer.