Final answer:
The statement that opportunity costs should only be used when outlay costs are unavailable is false; opportunity costs are considered alongside outlay costs. The second statement is true, as opportunity costs do not involve out-of-pocket expenses but the value of the next best alternative foregone.
Step-by-step explanation:
Both statements query the nature and use of opportunity costs in economic decision-making. The first statement suggests that opportunity costs are used only when there are no outlay costs. This is incorrect, as opportunity costs are considered even when outlay costs are present, because they represent the cost of the next best alternative that is forgone. The second statement correctly identifies that opportunity costs do not involve out-of-pocket expenditures; instead, they reflect the potential benefits lost when choosing one option over another.
Let's consider the example of attending college. The monetary costs such as tuition, books, room, and board are out-of-pocket expenses. On the other hand, the opportunity cost would be the income a student could have earned if they were working instead of studying. Thus, it's evident that opportunity costs are part of decision-making irrespective of the availability of outlay costs.
The correct answer to the question is D. False, True - opportunity costs should be considered alongside outlay costs and they indeed do not entail immediate out-of-pocket expenses.