Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

A student described opportunity cost as ‘the next best option given up when a course of action is chosen’. Explain why this description is not adequate.

  • AThe ‘next best’ alternative is not stressed.
  • BThe type of economic system is not identified.
  • CThere is no mention of money values.
  • DThere is no reference to finite resources and unlimited wants.

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