2020 · Q116
Suppose an agricultural labourer earns ₹400 per day in her village. She gets a job to work as babysitter in a nearby town at ₹700 per day. She chose to work as agricultural labourer. Which one of the following is the opportunity cost of the agricultural labourer?
General KnowledgeIndian Economy
- A₹1,100
- B₹700
- C₹400
- D₹300
Explanation
Opportunity cost is the value of the best alternative forgone when a choice is made. By choosing agricultural labour at Rs 400 per day, she gives up the babysitter job paying Rs 700 per day, so the opportunity cost of her choice is Rs 700. Hence B.