Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

Helium is a gas with a restricted supply. It forms over thousands of years from decaying radioactive rocks. The US government controls 35% of the world’s supply and has been releasing its stocks for sale. Helium is vital in medical scanners. It is also used in party balloons, which some people regard as a wasteful alternative use of a valuable good. Which concepts can be applied to the statement above?

  • Ademand and supply, government subsidy
  • Bexcess demand, resource allocation
  • Cfactors of production, private monopoly
  • Dopportunity cost, public sector

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