The school board had to decide between a playground and a parking lot. Why couldn't they have both?

There was not enough land for both, so land was scarce.

What does 'opportunity cost' mean in the story about the playground?

The opportunity cost was the parking lot that the school board gave up to build the playground.

I can explain how scarcity, choice, and opportunity cost affect what we make and buy.

1
When resources are limited and cannot satisfy all wants, it is called scarcity, which forces people to make choices.
2
Opportunity cost is the next best thing that is given up when making a choice.
3
Because land is scarce, the school board had to choose between a larger playground and more parking space.