ECONOMICS (CBSE/UGC NET)

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ECONOMICS

OPPORTUNITY COST

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Juan came up with the following prioritize (in order) list of what he could do Friday after school.1) Go to work (what he did)2) Go to a football game3) Go to a friend’s house4) Go home and sleepAn economist would say that the economic cost of Juan going to work was ____
A
Going to work
B
Going to a football game
C
Going to a friend’s house
D
Going home and to sleep
Explanation: 

Detailed explanation-1: -The most desirable alternative given up as a result of a decision is known as opportunity cost.

Detailed explanation-2: -Opportunity cost is a concept in Economics that is defined as those values or benefits that are lost by a business, business owners or organisations when they choose one option or an alternative option over another option, in the course of making business decisions.

Detailed explanation-3: -The concept of opportunity cost was first developed by Professor Friedrich von Wieser (1914), a member of the Austrian School of Economics who exercised a strong influence on economists such as von Mises, Hayeck, or Schumpeter, the next generation of Austrian economists.

Detailed explanation-4: -A student spends three hours and $20 at the movies the night before an exam. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment). A commuter takes the train to work instead of driving. 29-Jan-2020

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