Can you explain how the concepts of scarcity, choice and opportunity costs are related from an economics view point?

Answer by  nRye (7)

Scarcity is a limitation of choice. Choosing one option over another yields a loss called opportunity cost: the value of other option, which has been lost by not being chosen.

Answer by  tamarawilhite (17883)

Scarcity is something that people want that is in short supply. Choice is defined by those options most consumers have. Opportunity costs are the risks and benefits of making a choice - if you spend $100 on A, you now cannot spend it on B.

Answer by  tamarawilhite (17883)

In economics, scarcity is supply far lower than demand. Choice is what people decide to do, resulting in purchasing or investing decisions. Opportunity costs are the cost of making a choice; deciding to go on vacation causes you to pay the opportunity cost of saving an emergency fund, with the opportunity of not going into debt if laid off.