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

Answer 1

Opportunity cost is the cost of the next best alternative. An example of this would be choosing to go to the movies, spending $5, instead of babysitting and getting paid $10. The opportunity cost of going to the movies is the $10 you would have made babysitting and, if you like babysitting, the opportunity to babysitt.
Scarcity is explained by limited resources and people's unlimited wants. We don't have enough resources to fulfill every person's wants, so, therefore, we face scarcity. Time is an examply of a scarce good. People may want more of it, but it is scarce because you can't buy it or go back in time, at least not yet.

Answer 2

Definition For Opportunity Cost

Answer 3

Opportunity cost is how much you scarifice on other alternatives when you choose to make a decision. Eg; Paying $50 to repair your computer, you sacrifice letting go of the pen drive u wanted to purchase.
The opportunity cost is the pendrive and not able to access your useful files wherever you go.

Scarcity is the excess of human wants over what can actually be produced, due to minimal exploitation of the factors of production or natural resources reaching depletion. In the event of scarcity, alternatives have to beused, and the choices made are based on opportunity cost eg; using water as an alternative for producing power,the opportunity cost is the invested cash on building a dam. Otherwise people could continue exploiting fossil fuel (petroleum) with the existing capital.

Answer 4

Given a situation with several options for example option a, option b and option c, you decided to go with option B. Hence opportunity cost is what you cannot (and never will get) of what option a and what option c will be (since you went with option b.

Therefore opportunity cost is what you gave up (option a and option c) to pursue your desired outcome (option b)

As for scarcity, given a situation, you can only do a certain limited amount of it because other factors are factoring in the expense of it. For example you want to get a tan in the summer and given a day, there are only 12 hours of sunshine and therefore the scarcity principle states that you can't get your tan once the sun goes down. (obviously it forces you to look for other alternatives to your resources such as an indoor tanning machine/equipment)

Answer 5

Simply put, opportunity cost is the value of the next best option. And scarcity implies a limited amount of a given resource, so that resource has to be used efficiently and will cost more.

Answer 6

Opportunity cost is the cost of giving up something, in choosing something else. For example if I use all my money to buy a car, I no longer have the money to buy a boat. Buying a car is the opportunity cost.

Scarcity is when demand outstrips supply and there is very little of a good to go around.