ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For example, choosing public transportation to travel to a particular destination by foregoing the option of traveling in one’s own car is a good example of opportunity cost, because you end up saving money which needs to be spent on fuel.

Detailed explanation-2: -False:-The process of specialization and trade has positive net benefits and is, therefore, beneficial to everyone.-Absolute advantage is the source of the potential gains from specialization and trade.

Detailed explanation-3: -Factors of production is an economic term that describes the inputs used in the production of goods or services to make an economic profit. These include any resource needed for the creation of a good or service.

Detailed explanation-4: -If a firm has any implicit costs, its economic profits exceed its accounting profits. The crucial difference between how economists and accountants analyze the profitability of a business has to do with whether or not are included when calculating total production costs.