3 Which of the following best explains why individuals and societies must make choices when presented with alternatives?

Individuals and societies must make choices when presented with alternatives due to the fundamental concept of scarcity. Scarcity refers to the limited nature of resources available to meet unlimited wants and needs. Here are the key reasons why choices must be made: 1. **Limited Resources**: Resources such as time, money, and materials are finite. Individuals and societies cannot have everything they desire, so they must prioritize their needs and wants. 2. **Opportunity Cost**: Every choice involves an opportunity cost, which is the value of the next best alternative that is forgone when a decision is made. Understanding opportunity costs helps individuals and societies make informed decisions that maximize their benefits. 3. **Diverse Preferences**: Different individuals and societies have varying preferences and priorities. Making choices allows them to select options that align with their values and goals. 4. **Trade-offs**: When choosing one alternative over another, trade-offs must be considered. This means evaluating the benefits and drawbacks of each option to determine which is the most advantageous. 5. **Economic Efficiency**: Making choices helps in the allocation of resources in a way that maximizes utility and efficiency, ensuring that resources are used where they are most valued. In summary, the necessity of making choices arises from the interplay of limited resources, opportunity costs, diverse preferences, trade-offs, and the pursuit of economic efficiency.