Given that resources are scarce,
A) A "free lunch" is possible, but only for a limited number of people.
B) Opportunity costs are experienced whenever choices are made.
C) Poor countries must make choices, but rich countries with abundant resources do not have to make choices.
D) Some choices involve opportunity costs while other choices do not. Any choice requires us to give something up.

Question

Quizplus · Accepted Answer

Scarcity means that resources are limited in contrast to our unlimited wants and needs. Because of this, we must make choices, and every choice has an opportunity cost. Option A is incorrect because there is no such thing as a free lunch. Someone, somewhere had to produce the resources used to create that lunch. Option C is also incorrect because any country, regardless of wealth, must still make choices about how to allocate resources. Option D is partially correct, but every choice involves opportunity costs, whether we recognize them or not.

Given That Resources Are Scarce