ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The correct option is C. Opportunity cost.

Detailed explanation-2: -Answer and Explanation: The loss of the highest-valued alternative defines the concept of (D) opportunity cost.

Detailed explanation-3: -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-4: -Economists define an opportunity cost as the most highly valued opportunity given up when you make a choice. So the opportunity cost of buying the video game is that you cannot buy the DVD. The opportunity cost is the opportunity lost. The opportunity cost of spending money is the lost opportunity to save the money.

Detailed explanation-5: -Opportunity cost The highest-valued alternative that must be given up to engage in an activity.