O-LevelEconomicsThe basic economic problem2281/11 · May/June 2011 · Q31 Mark

A firm decides to stop manufacturing ovens and to produce washing machines instead. What is the opportunity cost to the firm?

Athe additional washing machines produced

Bthe cost of producing ovens

Cthe cost of producing washing machines

Dthe loss of the production of ovens

✓ Correct answer

D: the loss of the production of ovens

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Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2011 Paper 1 Variant 1, question 3.

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