Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

A government states that it plans to allocate an extra $\$10\text{bn}$ to healthcare, with this being funded by lower expenditure on defence. What economic concept is shown by this choice?

  • Aexpansionary monetary policy
  • Bincreased spending on a public good
  • Copportunity cost
  • Dthe operation of the market mechanism

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