If a commodity is provided free to the public by the Government, then
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Answer: C. Making something free does not remove its cost; resources are still used up. The cost shifts from the users of the product to taxpayers, who fund it. So option C.
Watch for: Option D looks right since the Government pays, but the Government's money comes from taxpayers.
Why the other options are wrong
- A. Wrong because opportunity cost never becomes zero when resources are used.
- B. Wrong because the cost is not ignored; it is borne by someone.
- D. Wrong because the Government only spends taxpayers' money; taxpayers bear the cost.
Source to check: NCERT Class 12 'Introductory Microeconomics', Chapter 1 (opportunity cost)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.