Thursday, March 12, 2020

Scarcity, Choice and Opportunity Cost

Scarcity and Choice in a One-Person Economy

A single person economy is the simplest economy. In a single person economy there's no differentiation between individual and society but it doesn't allow you to skip the complex economic questions. The three basic Questions have to be answered in every economy regardless of its size, what, how and for whom to produce.
Let's imagine if only one person is living in an island now he is having lots of resources of the island but he has limited time and skills. Now those scarcities makes him choose among his needs or wants. He has to choose what he would do at a time while trading off his other choices (which is an opportunity cost). Hence, this individual has to list his needs/wants in a list of priorities.


Scarcity and Choice in a Two or More Person Economy

This Economy has to answer the three basic questions and along with that it has to solve the distribution, cooperation and specialization questions. Two or more people have to cooperate among themselves for making their lives better and fulfilling all their needs.
Scarcity, Choice and Opportunity Cost in Urdu/Hindi:

Scarcity, Choice and Opportunity Cost in English:





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