Question

A key economic problem refers to the fact that scarcity forces us to choose, and these resulting choices are costly because we must give up other opportunities that we value.

a) true
b) false

Answer 1

True

Step-by-step explanation:

Economics provides us with the understanding that human wants are unlimited but the resources available to satisfy these wants are in short supply. Therefore, individuals and societies must make choices and this in turn would require selecting the best alternative. We most times have to give up valued choices to select the best or most important at that particular time.

These are the alternative forgone which we must forsake to satisfy the most pressing need. For example, a student who wants to study to pass his exams might have to forgo buying the latest phone so as to afford a textbook which he needs in order to pass his exams.