ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The given statement is False. The opportunity cost is defined as the item chosen or the activity in terms of the best alternative forgone. Individuals always do what they prefer to do as they do not have any other choice available.

Detailed explanation-2: -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. The word “cost” is commonly used in daily speech or in the news.

Detailed explanation-3: -Whenever a choice is made, something is given up. The opportunity cost of a choice is the value of the best alternative given up. Scarcity is the condition of not being able to have all of the goods and services one wants.

Detailed explanation-4: -A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources (land and farm equipment).

Detailed explanation-5: -The opportunity cost is the value of what you forgo to pursue something. The term describes the phenomena of choosing not to do something when you make a choice, as you give up one thing in favor of another. An example of opportunity cost might be when you choose between two brands of bread at the grocery store.