Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

A large supermarket sought permission to develop land in an area of natural beauty. The local government approved the development, although the area's natural beauty would be destroyed, because many jobs would be created and much-needed revenue would be provided for the local community. Which economic ideas cannot be found in the passage above?

  • Aexternal cost and private enterprise
  • Bfree market and the conservation of resources
  • Copportunity cost and improved standards of living
  • Dpublic sector and external benefit

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