Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

Instead of using the profits earned from oil to improve roads, railways and other infrastructure at home, the Norwegian government invested them in stocks, bonds and property. Domestic infrastructure, as a result, was not developed. Which economic concept is shown most clearly here?

  • Acost of production
  • Bfinite resources
  • Copportunity cost
  • Dproduction possibility frontier

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