What does opportunity cost refer to in the context of scarcity?

Opportunity cost is the idea that when we make a choice, we give up the next best alternative. This concept is important because resources like time, money, and materials are limited, which is what we mean by scarcity. For example, if you decide to spend your Saturday working at a part-time job instead of going to a concert, the opportunity cost is the enjoyment and experience you miss out on at the concert. Understanding opportunity cost helps us make better decisions by considering what we are sacrificing when we choose one option over another. By thinking about these trade-offs, we can make choices that align better with our goals and values.