The problem of selection:
A society cannot produce enough goods and services to satisfy all the wants of
its people, it has to make choices or selection. A decision to produce less of
some other good. So selection involves sacrifice.
There are a number of problems that can arise from
choices that are made by people, whether they are individuals, firms or
government, selection or alternatives are illustrated in terms of a ppc.
For instance, the more roads a country decided to
construct the fever resources will there be for building schools. So the
problem of selection arises where alternative ways of producing other goods are.
The sacrifice of the alternative in the production of a good is called the
opportunity cost.
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