InterviewSolution
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InterviewSolution
| 1. |
Why is choice essential in the study of economics? |
| Answer» Economics\xa0is sometimes\xa0called\xa0the\xa0study of scarcity\xa0because\xa0economic\xa0activity would not exist if\xa0scarcity\xa0did not force people to make\xa0choices. When there is\xa0scarcity and choice, there are costs. The cost of any\xa0choice\xa0is the option or options that a person gives up.\xa0Choice\xa0refers to the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of possible options. Being free to chose\xa0is\xa0regarded as a fundamental indicator of\xa0economic\xa0well being and development. | |