In your own words explain the concept of opportunity cost and scarcity?

Answer 1

With opportunity cost, you are giving up one thing for another thing.

Scarcity is the definition for the lack or limit of resources.

As a human, your time is scarce during the day, so you have to choose what opportunities, or activities you will do with your time.

For example, do you go to work, or do you spend time investing, or do you go to a movie. Each of these activities is a trade off of the opportunity for the other with your scarce resource of time.

Answer 2

The definition of economics according to the dictionary is 'The branch of knowledge concerned with the production, consumption and transfer of wealth.' Scarcity is to do with the fact that there's not enough resources to satisfy (it's the basic economic problem - human wants=unlimited, resources=limited). Opportunity cost is the benefit lost from the next best alternative. As to how they relate I'm not entirely sure. Maybe it's to do with trade offs, having to decide between two alternatives (scarce resources meaning you can't have both) and then the option that's left over being the opportunity cost.