Explain "opportunity cost" and how it relates to the definition of economics. To illustration this concept, give your explanation of the following decisions that would entail the greatest opportunity cost:
a.Allocating a square block in the heart of New York City for a surface parking lot, OR
b. Allocating a square block at the edge of a typical suburb for such a lot?
The economic resources such as goods and services are limited. The scarcity of resources restricts options and demands choices. "Because we can't have it all, we must decide what we will have and what we must forego"(McConnell & Brue, 2008, p. 4). Many economists use the phrase "there is no free lunch" to highlight the fact that even if one is treated to a free lunch, somebody else is paying for that lunch and that resources that could have been used to produce another product or service have been used. Since society could have used those resources used to give out "free lunch" to produce other goods or services, it forgone other goods and services. The products and services ...