Question

10. Opportunity cost

                a. never exist if there are alternatives.

                b. is irrelevant to rational choice.

                c. is the value of the next best alternative foregone in making a choice.

                d. never applies to government or public policy.

11. A rational person will

                a. never make mistakes in choices.

                b. select the choice where the expected present benefit is greater than the expected value of the costs.

                c. follow the Maslow Hierarchy of wants.

                d. be uncaring and void of emotions

Answer 1

10. Opportunity cost in simple terms can be defined as the letting the other options go for selecting the next best alternative option.

for example if a student decides that tomorrow is his examination then he has to leave his party and friends for choosing the option of studying in night for the examination.

so the option C is true.

11. In terms of Economics,a rational person is said to be a person who has a decision making process ability of making a choice in such a way that the present benefit is always greater than the value of cost that incurred.

it is not true that the rational people never make any mistakes in choosing the options for the given choices .

Maslow hierarchy theory is totally irrelevant of the given question.

So the answer true is option B