6. What problem does everyone in any society face?

The problem that each must face, however, is that once the decision has been made to choose one set of alternatives, one loses the opportunity to choose the other. It's a trade-off.

7. What is scarcity?

Is a limit to the supply of production resources or consumer goods in relation to produsers’ or consumers’ demand for them. Every society is faced with the problem of scarcity.

8. Why does scarcity force all decision makers to arrive at best decisions?

Individuals, business firms, and government - needs to make choices from among the things they want. In the process they will do their best to economize, to get the most from what they have. So Economists are concerned with how we make choices in a world of scarce resources. Individuals, families, business firms and governments all must make decisions about how best to allocate their limited resources that are at command.

9. How do economists explain the essential sense of scarcity?

Economists are concerned with how we make choices in a world of scarce resources. Individuals, families, business firms and governments all must make decisions about how best to allocate their limited resources that are at command(які є у наявності). When resources are limited, choices are limited as well. This means that the decision to have one thing is, at the same time, the decision not to have something else.

10. What is the opportunity cost?

The opportunity cost of something is its cost measured in terms of what you have to give up getting it.

11. What are foregone earnings (заробітки, від яких відмовляються)?

For example, many high school students consider going to college for four years after graduating from high school. If a student did not go to college then he or she would most likely find a job instead. Economists describe the money that those who choose college might have earned during their years of study as forgone earnings.

12. Why should people compare benefits before making their decisions?

Because every society is faced with the identical problem, the problem of scarcity. When resources are limited, choices are limited as well. This means that the decision to have one thing is, at the same time, the decision not to have something else. Individuals, families, business firms and governments all must make decisions about how best to allocate their limited resources that are at command.*

13. Why does the cost of doing something have nothing to do with spending money in most cases?

14. What are the two sides of opportunity cost?

The first side of opportunity cost: once the decision has been made to choose one set of alternatives, one loses the opportunity to choose the other. The other side: The problem of scarcity forces us to get the most from what we have.