Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

A large supermarket submitted an application to construct on land located in an area of natural beauty. The local government approved the construction, despite the fact that the area's natural beauty would disappear, because many jobs would be created and much needed income would be brought into the local community. Which economic ideas cannot be found in the above statement?

  • 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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