O-LevelEconomicsThe basic economic problem2281/11 · May/June 2010 · Q41 Mark

The government of a country with a rapidly increasing population decides to switch resources from investment to increased subsidies to farmers. What is the opportunity cost of this decision?

Athe profit earned by farmers

Bthe rent of the land on which food is grown

Cthe reduction in investment

Dthe wages of the farm workers

✓ Correct answer

C: the reduction in investment

Oracle Prep sorts past-paper questions by topic, so you can drill The basic economic problem and see which topics are most likely to come up next.

Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2010 Paper 1 Variant 1, question 4.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content