Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A farmer decides to plant corn instead of wheat, leading to a potential loss of revenue from wheat sales.
B
A student chooses to study for an exam instead of going out with friends, sacrificing social time.
C
A government allocates budget to healthcare instead of education, leading to reduced funding for schools.
D
All of the above.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity means that there are limited resources to meet our unlimited wants and needs. Opportunity cost is what we give up when we choose one option over another due to these limited resources. For example, imagine you have enough money to either buy a new video game or go to the movies with friends. If you choose to buy the video game, the opportunity cost is the fun and time you miss out on by not going to the movies. This shows how scarcity forces us to make choices, and every choice comes with a cost.
Detailed Explanation
All the options show choices where something is given up for something else. Other options are incorrect because This example shows a choice between crops, but it doesn't explain the loss clearly; While studying instead of hanging out is a choice, it doesn't show the bigger picture of losing something valuable.
Key Concepts
limited resources
opportunity cost
real-world examples of scarcity
Topic
Scarcity in Economics
Difficulty
hard level question
Cognitive Level
understand
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