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 Form 1 Business Studies: Satisfaction on human wants online lessons

Relationship between scarcity, choice and opportunity cost.

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Answer Text:
Relationship between scarcity, choice and opportunity cost.
-scarcity:refers to the condition that exists when there are not enough resources to satisfy all wants of an individuals or society
-choice:refers to the act of deciding which want to
satisfy first with the scarce resources available.
-opportunity cost:refers to the best alternative that has to be foregone in the cause of satisfying a want.
-it arises due to scarcity of goods and services and the fact that human wants are unlimited.
-Scale of preference: is the arrangement of our numerous wants in their order of priority , the most pressing or desired want is ranked last.


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