Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

A government chooses to increase spending on defence and is therefore unable to fund a new airport. Which concepts apply to the statement above?

  • Abudget surplus; external cost
  • Bfactor of production; private monopoly
  • Cpublic sector; opportunity cost
  • Dtrade surplus; budget deficit

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