{"id":1749,"date":"2024-03-29T14:53:46","date_gmt":"2024-03-29T09:23:46","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1749"},"modified":"2024-04-03T07:12:56","modified_gmt":"2024-04-03T01:42:56","slug":"q-if-a-commodity-is-provided-free-to-the-public-by-the-government-then","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-if-a-commodity-is-provided-free-to-the-public-by-the-government-then","title":{"rendered":"Q.\u00a0If a commodity is provided free to the public by the Government, then"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>the opportunity cost is zero.<\/li>\n\n\n\n<li>the opportunity cost is ignored.<\/li>\n\n\n\n<li>the opportunity cost is transferred from the consumers of the product to the tax-paying public.<\/li>\n\n\n\n<li>the opportunity cost is transferred from the consumers of the product to the Government.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer:<\/strong>&nbsp;<strong>(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-66067f79bcc0d\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Opportunity cost&nbsp;is what&nbsp;a business&nbsp;owner&nbsp;misses out&nbsp;on when&nbsp;selecting one&nbsp;option&nbsp;over another.<\/strong><\/li>\n\n\n\n<li>Opportunity cost represents the\u00a0<strong>benefits an individual, investor, or business misses out on when choosing one alternative over another.<\/strong>\n<ul class=\"wp-block-list\">\n<li>If a commodity is provided free to the public by the Government, then&nbsp;the opportunity cost is transferred from the consumers of the product to the tax-paying public.<\/li>\n\n\n\n<li>As per microeconomics,&nbsp;<strong>the opportunity cost is zero for free goods such as air and common goods such as fish\/grazing land.<\/strong><\/li>\n\n\n\n<li>For public goods such as street lights and defense, the opportunity cost is involved (The government could have spent that much money on street lights rather than on the military). So, the opportunity cost is not zero.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Opportunity costs can be viewed as a trade off. Trade offs happen in decision making when one option is chosen over another option. Opportunity costs sums up the total cost for that trade off.\n<ul class=\"wp-block-list\">\n<li>For example, a certain kind of bamboo can be used to produce both paper and furniture. If the business takes a decision to consider using bamboo for furniture, then the society has to forego the number of bamboos that could have been used for manufacturing paper.<\/li>\n\n\n\n<li>Here, the opportunity cost of producing furniture is the number of papers that are foregone.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer:&nbsp;(c) the opportunity cost is transferred from the consumers of the product to the tax-paying public. Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[55],"class_list":["post-1749","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-55"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":55,"label":"2018"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1749"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1749\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1749"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}