What is the relationship between scarcity choice opportunity cost and production possibility curve?

Answer 1

scarcity is the insufficiency of an amount or supply. oportunity cost is the cost of the lost that we have forgone. they impact our society because if you want to buy a CD or a dress but you only have money for one you might choose the CD player if it is more important than the dress. this is an example of opportunity cost. it is basically explaining to you that if you have two alternatives of things you will choose the more important alternative that will benefit you more. Scarcity is a shortage for example if you live in an economy that is in recession money will be scarce for many people because they are unemployment rates or increasing and because of the economy crisis many people finds it hard to spend because they are low on funds. they impact our society by causing us to make better decisions because if you have a certain amount of money you cant buy everything at the same time we have to forgone a lost (opportunity cost) because human needs are unlimited but resources are limited so we will always have to forgo a lost of an alternative for the more important alternative that will be more beneficial to us.