Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

Helium is a gas with a scarce supply because it needs thousands of years to be formed. The US government owns $35\%$ of the world’s supply of helium and has been selling off its stocks. Helium is vital for medical scanners. It is also used in party balloons, which is a wasteful alternative use of a valuable good. Which two concepts apply to this statement?

  • Ademand and supply, government subsidy
  • Bexcess demand, resource allocation
  • Copportunity cost, private monopoly
  • Dpublic sector, factors of production

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