In the question given below there are 2

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

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)- Opportunity cost is also referred as the opportunity a person has lost.

Reason (R)- Opportunity cost is the value of next best alternative, which is sacrificed while making a decision.

Options:

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.

Correct Answer:

Both (A) and (R) are true and (R) is the correct explanation.

Explanation:

The correct option is: ☀ Both (A) and (R) are true but (R) is the correct explanation of (A).

Here's why:

Assertion (A): Opportunity cost is also referred to as the opportunity a person has lost. This statement is true. When you make a decision, you forgo the benefits of other options. In essence, you lose the opportunity to pursue those alternatives.
Reason (R): Opportunity cost is the value of the next best alternative, which is sacrificed while making a decision. This statement is also true. This is the precise definition of opportunity cost. The Reason provides the correct explanation for why opportunity cost is referred to as the opportunity a person has lost.