Scarcity arises because of three basic economic problems, unlimited human wants, limited resources and limited resources have alternative uses. Scarcity is when a commodity is not enough for the consumption of everyone in the society. Scarcity forces humans to choose between their wants and needs. Choice is the selection between two or more goods and services. When we choose we are unable to satisfy all our wants and needs. Hence, choice leads to opportunity cost. Opportunity cost is the next best alternative forgone.
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