Central problem of economics
Q1: Explain the concept of scarcity, choice and opportunity cost when you are deciding whether to set up the Yoghurt ice cream stall.
Scarcity
limited resources
Time is scarce as it is impossible to have time to study in University as well as to manage a yoghurt Ice Cream store
Resources is also scarce as i will only have a limited amount of capital, land, raw materials and labour.
unlimited wants
going to the university
Opening a yogurt ice cream stall in Ang Mo Kio
Choice
Opening a yoghurt Ice Cream store at Ang Mo Kio instead of choosing to go university
Opportunity cost
From my perspective
Giving up the next best alternative, in this case the forgone income from the best job i can get with my A level results when i choose to go university.
From the Society's perspective
Giving up the next best alternative when scarce resources like buildings and electricity for lighting are used to teach me during university and the very same resources cannot produce the next best output possible (Eg. healthcare)