Why does the basic problem of choice arise?

A detailed answer to this question would start by defining and explaining the economic term - scarcity and establishing the relationship between our infinite needs and wants and finite resources. This would then to linked to opportunity cost which was to be defined - the foregoing of something (land, capital etc) in order to have something else - and how it gives rise to choice. 

Essentially the answer should say that the lack of unlimited resources means that something has to be foregone thus leading to choice. 

Giorgia M. avatar
Answered by Giorgia M. Economics tutor

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