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?

The central economic problem is scarcity. Man’s wants are unlimited, however, economic resources are limited, in that there are not enough resources to produce all the goods and services we want. Scarcity is the economic condition where all resources and goods and services, though they may be plentiful, are not sufficient for all those who desire them. Whenever scarcity exists, choice is inevitable. As resources are scarce, choices must be made as to what to produce and consume. When making a choice, the producer or consumer has to do without or forgo some good or service or course of action. This is the opportunity cost, the next best alternative forgone.

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