Choice
Definition. Choice is the act of selecting one option from among competing alternatives, made necessary by the scarcity of resources relative to unlimited wants. Because resources used for one purpose cannot simultaneously serve another, every economic agent must decide how best to allocate what is available.
Each choice carries an opportunity cost equal to the value of the next best alternative forgone. Rational agents choose the option that yields the greatest net benefit.
This term belongs to Opportunity Cost in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
Want to use choice for marks in the exam? Learn it in class or message the team.