My Learning Cart
?
Categories
Account

In the context of resource allocation, which of the following best describes the

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: In the context of resource allocation, which of the following best describes the term \'opportunity cost\'?

Options:

  1. The cost of the next best alternative foregone when a decision is made.
  2. The total cost incurred in the production of goods.
  3. The financial cost associated with a resource.
  4. The cost of resources that are not utilized.

Correct Answer: The cost of the next best alternative foregone when a decision is made.

Solution: 

Opportunity cost refers to the value of the next best alternative that is given up when a choice is made, making option 0 the correct answer.

In the context of resource allocation, which of the following best describes the

Practice Questions

Q1
In the context of resource allocation, which of the following best describes the term 'opportunity cost'?
  1. The cost of the next best alternative foregone when a decision is made.
  2. The total cost incurred in the production of goods.
  3. The financial cost associated with a resource.
  4. The cost of resources that are not utilized.

Questions & Step-by-Step Solutions

In the context of resource allocation, which of the following best describes the term 'opportunity cost'?
  • Step 1: Understand that when you make a choice, you have to give up something else.
  • Step 2: Identify what you are giving up when you make that choice.
  • Step 3: Recognize that the value of what you gave up is called 'opportunity cost'.
  • Step 4: Realize that opportunity cost is specifically about the next best alternative you could have chosen.
  • Opportunity Cost – The value of the next best alternative that is forgone when a decision is made.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks