2 November 2012
Scarcity and Opportunity Cost of Being a Student
Scarcity and opportunity cost is something that the entire human population faces every day. Without scarcity, opportunity cost would cease to exist and the choices that people will have to make will always be easy because there would be no hard decisions or trade-offs. It is something that impacts society today because the choices that people make will be based on what they need or want. Whatever they choose to do, they will sacrifice an opportunity cost. Human needs will always be unlimited but the resources needed to meet those needs will always remain limited.
But what exactly is scarcity and opportunity cost? First off, scarcity is an economical problem in which people who will always have unlimited wants and needs, will also face a limited amount of resources. Scarcity is something connected to all economical decisions because it is a worldwide problem. People have to make hard choices to decide what to receive and what to discard. This is where opportunity cost comes in. Opportunity cost is the next best choice that he or she decides not to do because of a better choice. It is something that people give up to get something else that they want even more. From what can be said of scarcity and opportunity cost, both fit in very well together. Scarcity forces people to make tough decisions on limited resources which lead to opportunity cost.
Decision making will always be hard when people cannot always have what they want. Because resources are scarce, people will most likely choose the thing in which they need more. For example, if the price of a PC and a flat-screen HD TV were both on sales, people would have a choice of buying either one. If a person has enough money for only one, that person has to make a tough decision. If he or she chooses to buy the PC because it was the better alternative due to productivity and daily applications,...