Because of scarcity, every decision involves a:

• A. trade-off
• B. free good
• C. surplus
• D. market equilibrium

Answer: (A)

Verified step by step guidance

1. Understand the concept of scarcity in economics: scarcity means that resources are limited while human wants are unlimited.
2. Recognize that because resources are limited, choosing one option means giving up another; this is the essence of a trade-off.
3. Define a trade-off as the need to sacrifice one thing to gain something else due to limited resources.
4. Contrast trade-off with other options: a free good is not scarce, surplus refers to excess supply, and market equilibrium is where supply equals demand.
5. Conclude that every decision involves a trade-off because scarcity forces individuals and societies to make choices between alternatives.