0
Why scarcity forces individuals and society to incur opportunity costs?
Wiki User
∙ 13y ago
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)
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
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
Economic scarcity refers to what?
Choices of scarcity Scarcity forces a choice among other alternatives, everyone faces scarcity at some point in time, as most person income does not allow them to buy everything they would like to obtain so this forces them to make a budget to decide how much of what goods to buy. With scarcity choices are always a factor as it involves giving up one thing to again another, for example, you wanted to take a vacation with your family which would cost you US$1000 with this US$1000 you could also do some well needed work the roof of your for the hurricane season which is coming up. What did the vacation really cost? Some might say just US$1000 but in reality it really cost you a well needed repair that should have been done to your house which would be available for years to come for the family to inherit and enjoy, which is called Opportunity Cost the cost of foregone alternatives. Time also plays a major role in the economy's society as in scarcity and choice, and also opportunity cost. As time is not always available and scarcity is considered when the amount of a good is not being supplied to meet the demand, as it is often based on an idea that goods are often times limited in the supply, which can be managed through making choices regarding value for exchange. If a persons spends eight hours each day working, the opportunity gained is more work experience and knowledge you gained if you had spent the same eight hours each day sitting with friends drinking and watching movies.
How does scarcity force us to make choices?
Scarcity forces us to make choices because every individual have unlimited wants to satisfy. And no one can have everything that they desire, as supplies and resources are limited.
The concept of scarcity force's people to?
Scarcity of resources forces people to make choices between a number of options available to us everyday. People are forced to chose which of their needs & wants they want to satisfy and which desires will they leave.
Which large sample of individuals is not included in the civilian labor force?
individuals in the armed forces
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
Why do you have scarcity?
because its prise is determined by interaction between both demand and supply forces
Economic scarcity refers to what?
Choices of scarcity Scarcity forces a choice among other alternatives, everyone faces scarcity at some point in time, as most person income does not allow them to buy everything they would like to obtain so this forces them to make a budget to decide how much of what goods to buy. With scarcity choices are always a factor as it involves giving up one thing to again another, for example, you wanted to take a vacation with your family which would cost you US$1000 with this US$1000 you could also do some well needed work the roof of your for the hurricane season which is coming up. What did the vacation really cost? Some might say just US$1000 but in reality it really cost you a well needed repair that should have been done to your house which would be available for years to come for the family to inherit and enjoy, which is called Opportunity Cost the cost of foregone alternatives. Time also plays a major role in the economy's society as in scarcity and choice, and also opportunity cost. As time is not always available and scarcity is considered when the amount of a good is not being supplied to meet the demand, as it is often based on an idea that goods are often times limited in the supply, which can be managed through making choices regarding value for exchange. If a persons spends eight hours each day working, the opportunity gained is more work experience and knowledge you gained if you had spent the same eight hours each day sitting with friends drinking and watching movies.
How does scarcity force us to make choices?
Scarcity forces us to make choices because every individual have unlimited wants to satisfy. And no one can have everything that they desire, as supplies and resources are limited.
When was Royal Air Forces Escaping Society created?
Royal Air Forces Escaping Society was created in 1946.
Which large sample of individuals is not included in the civilian labor force?
individuals in the armed forces
The concept of scarcity force's people to?
Scarcity of resources forces people to make choices between a number of options available to us everyday. People are forced to chose which of their needs & wants they want to satisfy and which desires will they leave.
Why do you celebrate Armed Forces Day?
it an opportunity for a nation to show support for the men and women who make up the armed forces
What was a concern in Inca society?
invaded forces
What is a counter intelligence agent?
The force or forces used to deny hostile intelligence forces the opportunity to gain information about your plans and operations.
What is one problem of stereotyping?
It forces complex individuals into simple categories.
Advantages and disadvantages of a monetary economy?
That really depends on who you are.. if you're the 99,97 %, there are mostly disadvantages. It create scarcity and poverty, forces the worlds population into debt slavery.
