O-LevelEconomicsThe basic economic problem2281/12 · May/June 2023 · Q31 Mark
A government spends $100m on subsidising wind farm construction instead of spending it on an increase in healthcare. Which economic concept does this spending decision illustrate?
Aexternal cost
Bfree goods
Cmarket disequilibrium
Dopportunity cost
✓ Correct answer
D: opportunity cost
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