Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

Governments in low-income countries often permit foreign multinational companies (MNCs) to extract minerals within their borders. Which clash between benefit and cost could this create for low-income countries?

  • Aimproved balance of trade → training by the MNCs
  • Bhigher employment → loss of a finite resource
  • Cincreased profits for the MNCs → efficient production
  • Dmore sustainable development → economic growth

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI