Why is choice fundamental to economic behavior?

Answer 1

choice is a basic fundamental problem of economic,every individual has to make a rational decision to choose between two alternatives because of scarcity of resources,the major problem that made choice exist is because scarcity of resources if for example resources for satisfying human wants are available there will be no need of making any choice.i believe that if choice arises because of scarcity,the major solution is making a choice or arrange your want according to preference and choose the most important one.

Answer 2

Economics is based on choice.

In a basic example of economic theory, supply and demand, we can see choice inherent in the process.

There is a supply of 5 TVs with 7 potential buyers. Since there are not 7 TVs the suppliers must choose who receives the TVs. They then choose to raise the price, eliminating buyers who chose not to accept the higher price. Once the price reaches a point where there are only 5 buyers, you reach equilibrium.

This example depends on choice throughout.

A supplier must either choose who receives the product (cronyism, corruption or discrimination) or choose to raise the price so the buyers choose among themselves who is able to buy the product.

The buyer makes a choice to accept the price or exert influence on the supplier. Eventually when the price rises a buyer chooses to not purchase the product (and allow someone else to buy it) because that money will be used for something else (also a personal choice).

Answer 3

Economics is essentially a study that looks at the allocation of scarce resources. There is a choice to be made between different allocations and these lead to different outcomes. So economics can also be said to be a study of choices in the allocation of scarce resources. Since it underpins the subject, it is not surprising that it is a necessary part of the subject.

Answer 4

choice is fundamental to eceonomic behaviour because it implies the existence of opportunity cost.