ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost is the value of the best opportunity forgone in a particular choice. It is not simply the amount spent on that choice. The concepts of scarcity, choice, and opportunity cost are at the heart of economics. A good is scarce if the choice of one alternative requires that another be given up.

Detailed explanation-2: -Opportunity cost is a direct implication of scarcity. People have to choose between different alternatives when deciding how to spend their money and their time.

Detailed explanation-3: -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-4: -Opportunity cost (also known as “alternative cost, ”) is the difference between a project’s cost estimate and another option that must be foregone in order to implement the project. Every choice we make also means giving up another option.

Detailed explanation-5: -In economics, opportunity cost represents the potential gain that is lost when choosing one investment choice over another.