Assertion (A): Opportunity cost exists only when resources are scarce.
Reason (R): When resources are scarce, using them for one thing means not using them for another.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Without scarcity, nothing would have to be given up, so A is true.
R states the sacrifice that scarcity forces, which is what opportunity cost measures, so R explains A.

Concept: Scarcity and opportunity cost
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsOpportunity cost and MRT

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Ten questions from Central Problems & the PPC, at your own pace.

Assertion (A): Opportunity cost exists only when resources are scarce.Reason (R): When resources are scarce, using them for one thing means not using them for another.

Explanation

Assertion (A): Opportunity cost exists only when resources are scarce.
Reason (R): When resources are scarce, using them for one thing means not using them for another.