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This is the basic economic problem:
Infinite Wants--> Finite Resources--> Scarcity-->Choice--> Opportunity costs
So the problem is: How can we allocate resources efficiently, knowing that they are an infinite number of wants (but fewer needs) and there are only a limited amount of resources, which are scarce.
Because there is scarcity (deficit/lack of supply of resources), people are left with a choice: That choice is an opportunity cost. Opportunity costs is the cost/disadvantage that occurs from choosing the next-best-alternative because of scarcity.
an example: the government wants to build a new highway, but ther land is scarce( there is not enough land), and so, the opportunity cost is to build a new public school. The opportunity cost is the efficiency and accesibilty of transportation. The next-best-alternative is usually chweaper but is in less quality/quantity than the initial good or service.
So basically, because of scarcity, consuimers and producers have to make a choice: whose wants need to be satisfied? what is more important?
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How did the colonists make choices and incur opportunity costs with scarcity?
they ensured that limiting their intake and created a balance between need and resources
Why scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs. Example: You have 100 pieces of wood in the planet You can either create 50 bookshelves or 30 tables. If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)
Why does scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs.Example:You have 100 pieces of wood in the planetYou can either create 50 bookshelves or 30 tables.If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)Read more: http://wiki.answers.com/Why_scarcity_forces_individuals_and_society_to_incur_opportunity_costs#ixzz1SVLrG1QA
Is it possible for a person to incur an opportunity cost without spending any money?
yes, offcourse, why not, absolutely, definitely, reasonably yes
What is the ability to produce a good or service at a lower opportunity cost than other producers incur is known as?
Comparative Advantage.
How did the colonists make choices and incur opportunity costs with scarcity?
they ensured that limiting their intake and created a balance between need and resources
Why scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs. Example: You have 100 pieces of wood in the planet You can either create 50 bookshelves or 30 tables. If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)
Why does scarcity forces individuals and society to incur opportunity costs?
Because in an economy, everything is "scarce" (there is a finite amount of that good available), individuals and society can only use these scarce resources to produce a fixed amount of good. Therefore, they have to choose how to use their resources, creating the concept of opportunity costs.Example:You have 100 pieces of wood in the planetYou can either create 50 bookshelves or 30 tables.If you choose to produce bookshelves, the opportunity cost is 30 tables (since you don't have any more pieces of wood to produce the tables) and if you choose to produce the tables, the opportunity cost will be 50 bookshelves (for the same reason)Read more: http://wiki.answers.com/Why_scarcity_forces_individuals_and_society_to_incur_opportunity_costs#ixzz1SVLrG1QA
Law of decreasing opportunity cost?
The law of decreasing opportunity cost states that as a producer shifts resources from one good to another, the opportunity cost of producing additional units of the second good will decrease. This is because resources are not equally productive in all activities, leading to diminishing returns as more resources are allocated to a single activity.
Is it possible for a person to incur an opportunity cost without spending any money?
yes, offcourse, why not, absolutely, definitely, reasonably yes
What is the ability to produce a good or service at a lower opportunity cost than other producers incur is known as?
Comparative Advantage.
Can you sell your property during forclosure?
No. You would only incur more costs.No. You would only incur more costs.No. You would only incur more costs.No. You would only incur more costs.
A sentence with the word Incur?
Drivers who are convicted of speeding incur a penalty.
Is this sentence correct you will incur additional cost?
you will incur additional cost
Can you use incur in a sentence?
It is easy to incur debt if you abuse your credit cards.
How do you put incur in a sentence?
maybe..... incur is a very hard word to put into a sentence. or' How do you put incur into an sentence hope it helpps! ya byeees
Is it possible to incur opportunity cost without spending any money?
Opportunity cost can also deal with time. For example, shopping at Wal-mart versus shopping at sears, Khols, and giant eagle will lower your opportunity cost. At Wal-mart you'll be able to find many of the items you'd typically be looking for when shopping (whether they are better or not is up to you). My point is that from this example, your opportunity cost is lower shopping at W-mart because you are saving time. In my opinion, opportunity cost means "time is money."
