ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The answer is False. Opportunity costs are the benefits from the next best alternative the decision-maker chooses.

Detailed explanation-2: -Each opportunity has losses and gains. Opportunity value less actual gain is an estimation of the opportunity cost. The same choice will have different opportunity costs for different people.

Detailed explanation-3: -What Is Opportunity Cost? Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked.

Detailed explanation-4: -Answer and Explanation: Of the given statements about opportunity costs, (a) III only is TRUE. I. The opportunity cost of a given action is equal to the value foregone of all feasible alternative actions.

Detailed explanation-5: -The Idea of Opportunity Cost Economists use the term opportunity cost to indicate what must be given up to obtain something that’s desired. A fundamental principle of economics is that every choice has an opportunity cost.