ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Opportunity cost is defined as the cost of the next best alternative foregone. It represents the sacrifices that people must make due to the scarcity of resources.

Detailed explanation-2: -Economics Content Standards: Whenever a choice is made, something is given up. The opportunity cost of a choice is the value of the best alternative given up. Choices involve trading off the expected value of one opportunity against the expected value of its best alternative.

Detailed explanation-3: -The Idea of Opportunity Cost Since resources are limited, every time you make a choice about how to use them, you are also choosing to forego other options. Economists use the term opportunity cost to indicate what must be given up to obtain something that’s desired.

Detailed explanation-4: -What does the phrase “Choosing is Refusing” mean? It means that one faces an opportunity cost for each decision that is made and that when a choice is made between alternatives one is accepted the other is refused.