Consider the following about Opportunity cost

1. It considers the cost of opportunity that has been missed out
2. It functions only in case of scarcity

Which of the above statements are correct?

1 only

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2 only

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Both 1 and 2

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Both 1 and 2
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. The scarcity of resources will lead to making different decisions so one type of "need" or one "investment opportunity" could be satisfied at the cost of another.

Suggest Corrections

Similar questions

Q.  Consider the following about Opportunity cost
1. It considers the cost of opportunity that has been missed out
2. It functions only in case of scarcity

Which of the following statements is/are correct?

21. Consider the following statements regarding Tax Expenditure:
1. It is the expenditure incurred by the Government in the collection of taxes.
2. It shows the extent of indirect subsidy enjoyed by the tax payers in the country.
3. Tax Expenditure shows the opportunity cost of taxing at concessional rates, or the opportunity cost of giving exemptions.
Which of the above statement(s) is/are correct?

Which of the following statements about opportunity cost is TRUE?

I. Opportunity cost is equal to implicit costs plus explicit costs.
II. Opportunity cost only measures direct monetary costs.
III. Opportunity cost accounts for alternative uses of resources such as time and money.

Q. Opportunity Cost arises only when alternatives are available. This statement is:-

Consider the following statements about the Women Scientists Scheme:

Which of the above statements is/are correct?

1 and 2 only
3 and 4 only
1,2 and 4 only
4 only

Join BYJU'S Learning Program

Consider the following about Opportunity cost 1. It considers the cost of opportunity that has been missed out 2. It functions only in case of scarcity Which of the above statements are correct?

Consider the following about Opportunity cost

1. It considers the cost of opportunity that has been missed out
2. It functions only in case of scarcity

Which of the above statements are correct?