The concept of 'Opportunity Cost' is best defined as: MCQ with Answer and Explanation

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The concept of 'Opportunity Cost' is best defined as:

A. The total cost incurred in production

B. The value of the next best alternative forgone

C. The difference between total revenue and total cost

D. The cost of producing one more unit of a commodity

Answer: Option B

Solution (By JKSSB Mock Tests)

Opportunity cost refers to the value of the next best alternative that is sacrificed when a choice is made. It is a fundamental concept in economics.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Lokpal' in India is a:

A. statutory body

B. judicial body

C. constitutional body

D. private body

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Correct Answer: Option A

Explanation:
Lokpal is a statutory body established under the Lokpal and Lokayuktas Act, 2013.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the capital account convertibility?

A. Only export-related convertibility

B. Complete ban on capital flows

C. Freedom to convert local currency into foreign currency for current account transactions only

D. Freedom to convert local financial assets into foreign financial assets and vice versa

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Correct Answer: Option D

Explanation:
Capital account convertibility allows residents and non-residents to convert local currency into foreign currency and transfer capital freely for investment and other capital transactions.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a method of privatisation?

A. Disinvestment of shares

B. Strategic sale

C. Nationalisation

D. Public-private partnership

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Correct Answer: Option C

Explanation:
Nationalisation is the opposite of privatisation; it involves taking private assets into public ownership. Privatisation methods include disinvestment, strategic sale and PPP.

This question belongs to: Economy GK Economy Set 1

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