In the context of economics, when individuals or societies face scarcity, they must make _____, which involve evaluating the costs and benefits of different choices.

In economics, when individuals or societies face scarcity, they must make trade-offs. This means that they have to decide between different options because resources like time, money, and materials are limited. For example, if a student has a limited amount of money to spend, they may choose between buying a new video game or going out for dinner with friends. In this situation, the student needs to think about the benefits of each choice, such as enjoyment from the game versus social time with friends, and weigh those against the costs. By evaluating these options, they can make a decision that best fits their needs and priorities.