Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

What is the opportunity cost to society when unemployment rises?

  • Athe increase in taxes to pay for unemployment benefits
  • Bthe loss in national output
  • Cthe reduction in the disposable income of those who lose their jobs
  • Dthe resulting increase in the government’s fiscal deficit

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