ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost, ” we usually mean opportunity cost.
Detailed explanation-2: -Opportunity cost is what you give up (the benefits of the next best alternative) when you make a choice.
Detailed explanation-3: -The above statement is TRUE. This also indicates the scarcity of resources in relation to wants and gives rise to the problem of choice (which wants to be satisfied given the limited resources). In this way, Economics is the study of choice under the state of Scarcity.
Detailed explanation-4: -Ultimately, economics is the study of choice. Because choices range over every imaginable aspect of human experience, so does economics. Economists have investigated the nature of family life, the arts, education, crime, sports, law-the list is virtually endless because so much of our lives involves making choices.