ECONOMICS
OPPORTUNITY COST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
In most cases, there is an alternative option
|
|
|
In most cases, there is no alternative option
|
|
|
people have infinite wants
|
|
|
resources are not allocated efficiently
|
Detailed explanation-1: -Thus, because we cannot have everything we want as a result of scarcity, every choice that must be made between two or more options has an opportunity cost.
Detailed explanation-2: -It exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
Detailed explanation-3: -The Opportunity Cost Principle is essential for understanding the fundamental economic problem of scarcity. It reinforces the idea that there are always a finite amount resources available in any given situation.
Detailed explanation-4: -Opportunity cost refers to the loss of other alternatives, when one alternative is chosen over others. For example, given a $1 bill, a person may buy an apple or an orange or a banana. He can not buy all three or any two of it. Thus, he has to chose among buying apple, orange and banana.