1. In what ways do you think the prices of goods are related to the law of increasing opportunity cost? In all societies, whether it is on a micro- or macroeconomic level, resources are limited and unable to satisfy unlimited needs and wants. How would you solve this problem?

The solution is to make choices and determine priorities either on an individual or societal level. Each community decides its own alternatives based on its preferences, values, and internal and external economic conditions. Hence, there are differences in the kind of trade-offs communities face in high versus middle-income countries.

For example, let us focus on two countries in the Middle East: Jordan and the United Arab Emirates (UAE). The real gross domestic product (GDP or income) of the UAE is approximately 11 times that of Jordan.