ECONOMICS (CBSE/UGC NET)

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ECONOMICS

OPPORTUNITY COST

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Mr. Stevens owns a building in downtown Bentonville. He has considered opening a sporting goods store in the building but has also been approached by someone who would like to rent the space to open a gym. If Mr. Stevens decides to open his sporting goods store, what is the opportunity cost of this decision?
A
the opportunity to rent it to another tenant
B
the property tax he would pay on the building
C
the opportunity he has to run his own business
D
the profits he would make from his sporting goods store
Explanation: 

Detailed explanation-1: -1Lotteries, markets, barter, rationing, and redistribution of income are all methods commonly used to. allocate scarce resources.

Detailed explanation-2: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.

Detailed explanation-3: -Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society.

Detailed explanation-4: -Scarcity exists in all societies and at all income levels because human wants exceed what can be produced with the limited resources and time that nature makes available.

There is 1 question to complete.
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