Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

Intense rainfall led to flooding in a region of a country. What could be an opportunity cost of carrying out repairs for the damage caused?

  • Athe allocation of government funds to the area instead of a new airport
  • Bthe cost of providing shelter for those made homeless
  • Cthe decline in the tourist industry in the area
  • Dthe loss of profits from businesses affected by the flood

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