Which of the following best describes the concept of opportunity cost in decision-making under scarcity?

When making decisions under scarcity, what is the primary goal of evaluating all feasible actions?

In the context of decision-making under scarcity, what does the term 'trade-off' refer to?

How do economists model decision-making under scarcity?

Willingness to Pay

Net Benefit (Pay-off)

Opportunity Cost Definition

Direct Costs Definition

Economic Cost Definition

2012 UK University Tuition Fee Increase

Economic Good

Preferences

Model of Constrained Choice (Decision Making Under Scarcity)

Economic Definition of Risk

Calculating Opportunity Cost

Analyzing a Student's Weekend Dilemma

City Council's Land Use Decision

Advising on Public Land Use

A small town has received a one-time government grant of $1 million, which must be spent within the year. The town council has identified three potential projects, each costing the full$1 million:

1. Upgrading the public library with new computers and books.
2. Repaving the main roads to improve transportation.
3. Building a new community swimming pool.

From an economic perspective, what is the most critical first step the town council must take to make a rational decision under this constraint?

Evaluating a Career Choice