Question

In economics, when people choose among alternatives, there are three ideas that are involved. Which of the following is NOT one of them?

		opportunity cost
		scarcity
		choice
		productivity

Answer 1

Economics is the study of choice . Human learn to choose nationally using ideas of economics. Choosing alternative mainly depends upon three things. They are Scarcity, Choice and opportunity cost . Our resources are limited . Once we have a huge amount of resources but increasing demand and excessive use of those resources make is scare . Thus we have to choose between alternative if the good is scare . Scarcity of resources brings the idea about opportunity cost m It is the cost that one bear when one forgo some alternative goods . If opportunity cost of doing something or buying a good is high then we may not go for that good . Scarcity brings the idea about choice . Thus in economics when people choose among alternatives the idea if productivity doesn't come into play .