In most societies, resources are allocated a. by a single central planner. Economists study a. how people make decisions and factors which affect the overall economy. Even people on welfare have to pay for food these days. To get something we like, we usually have to give up another thing we like. The things we eat usually contain harmful substances which will hurt our health over time.
Food is a scarce good.
His tradeoff is a. nothing, because he enjoys playing basketball more than working or studying. When society requires that firms reduce pollution, a. there is no tradeoff, since everyone benefits from reduced pollution. The opportunity cost of an item is a. greater during periods of inflation and lower during periods of deflation. In the former Soviet Union, bread was subsidized so much that the price of bread was less than the price of the grain that was used to produce the bread. To switch from producing meat to producing grain.