“Economics is the study of how humans make choices under conditions of scarcity.” Critically examine the statement with suitable examples.
“When the tasks involved with producing a good or service are divided and subdivided, workers and businesses
can produce a greater quantity of output.” Critically examine this statement keeping in mind the role of division of labor and specialization.
. Which economic principle is most involved in the analysis of scarcity using a production possibilities curve?
Illustrate your answer with the help of a diagram.
. “Opportunity cost is the value of the benefits of the foregone alternative, of the next best alternative that could have been chosen but was not.”
Critically analyze the statement by understanding that choices and alternatives have its own advantages and time constraints.