Final answer:
Scarcity means that resources are limited, so all economic choices come with an opportunity cost, which is the value of the alternative forgone in choosing one option over another.
Step-by-step explanation:
Scarcity arises due to limited resources, and because of this fundamental economic problem, every choice we make entails an opportunity cost. This is the value of the goods, services, or other benefits that are forgone to obtain an alternative. In economics, we also look at factors of production, which include land, labor, capital, and entrepreneurship, which are all resources necessary for creating goods and services.
The economic system of a society is designed to handle the production, consumption, and distribution of goods and services, navigating the inherent issue of scarcity. We use models like the circular flow model to depict how resources circulate through the economy from producers to consumers and back. Therefore, because of the limited availability of resources, all economic choices involve an opportunity cost, which succinctly answers the student's question with option (c) an opportunity cost.