O-LevelEconomicsThe basic economic problem2281/11 · Oct/Nov 2010 · Q31 Mark

A government is faced with the choice of spending on either education or healthcare. Of what is this an example?

Aconservation of resources

Bmonetary policy

Copportunity cost

Dsubstitution of factors

✓ Correct answer

C: opportunity cost

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Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2010 Paper 1 Variant 1, question 3.

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