Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

A large supermarket sought permission to construct on land that formed part of an area of natural beauty. The local government approved the construction, although the area’s natural beauty would be destroyed, because many jobs would be created and much-needed revenue would be provided to the local community. Which economic ideas are not present in the statement above?

  • Aexternal cost and private enterprise
  • Bfree market and the conservation of resources
  • Copportunity cost and improved standards of living
  • Dpublic sector and external benefit

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