Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

A government chooses to increase spending on defence and, as a result, cannot use the money for a new airport. Which concepts can be applied to the statement above?

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

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