Using complete sentences, describe the central economic problem facing all humans. Why does this require people to make choices? How can this result in opportunity costs?

Answer:

Responses may vary but should include some or all of the following information: The central economic problem facing all humans is scarcity. Scarcity occurs because there is a limited amount of resources, but people have unlimited wants. Because of this, it is necessary to make choices. People must decide how to use the resources that are available to them. Every choice comes with a cost. A cost is something given up as the result of a choice. In economics, costs are usually known as opportunity costs or the best alternative given up.