Practice mode Introduction To Economics

What does the concept of opportunity cost imply?

Correct answer A. A major increase in public health care spending means an expansion in other areas will be harder to achieve

Explanation

With limited resources, committing more to health care leaves less for other uses such as education or defence. That forgone alternative is the opportunity cost of the extra health spending.

Tip: press A, B, C or D to answer, and N for the next question.

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