Economics is about making choice in the presence of scarcity explane
Answers
Economics is the study of or the discipline of consumption, production of good and services and transfer of wealth i.e. investment. It deals with all sectors, and various types of goods and services.
In economics, there is opportunity cost, meaning, the concept of choosing the next best alternative due to scarcity of resources.
Scarcity of resources occurs due to the limited resources being present which are used to produce goods and services, but for consumption people have unlimited demands.
In order to satisfy these demands, people have limited resources, for instance, money. And then choice has to be made as to which good should be purchased. To do this people weigh their pros and cons of purchasing a certain good, i.e. opportunity cost.
Example: Burger costs 20 and pizza costs 20 and the total income is also 20, so consumer has to choose, which one to purchase as the amount is limited.
Explanation:
refer to the attachment
