Practicing Success
Practicing Success
CUET Preparation Today
In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options. Assertion (A)- Raju has Rs. 3,00,000 with him, he has 2 choices i.e. to open an F.D. and get a return of 6% whereas, the other choice was to invest in his business which may or may not give him return. According to Raju, if he invests in his business his opportunity cost would be the interest he could have earned if he had invested the money in the form of FD. Reason (R)- Opportunity cost means the value which you gain by choosing the best alternative out of the available possibilities.
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Both (A) and (R) are true and (R) is the correct explanation. Both (A) and (R) are true but (R) is not the correct explanation of (A). (A) Is true but (R) is false. (A) Is false but (R) is true. |
(A) Is true but (R) is false. |
Opportunity cost refers to the value of the next best alternative, which is forgone when we make a decision. It is basically the second best possible alternative with an individual. |
