O-LevelEconomicsThe basic economic problem2281/12 · May/June 2017 · Q21 Mark
Heavy rain caused floods in an area of a country. What may be an opportunity cost of repairing the damage caused?
Athe allocation of government funds to the area instead of on 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
✓ Correct answer
A: the allocation of government funds to the area instead of on a new airport
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