Scarcity is when a country is short of resources- unable to satisfy the unlimited wants of people with limited resources. So for that choices have to be made. When we give up something for the better or the forgone  benefit we could have get by arriving  at the next best alternative is known as opportunity cost. For … Read more

Opportunity cost is the next best alternative forgone. For example if a government plans to build hospital and a school  in a rural area it has to give up something. Because as we know resources are scarce and for that choice has to be made. So if government plans to go a head with school then … Read more