Opportunity Cost IGCSE Econ

---is the opportunity cost to the economy if the government decides to build a new hospital.

• The other projects that could have been undertaken had a hospital not been built

• The cost to the taxpayer of building a hospital

• The money spent on building a hospital

• The wages paid to the workers who build a hospital

Opportunity cost may be defined as...

• the cost of the next best opportunity forgone when making a decision

• the cost involved in making a decision

• the benefit enjoyed from making a choice

• the cost of a lost opportunity

Economic agents have to make choices due to__

• unlimited resources

• the existence of free goods

• finite resources

• limited altrenatives

Opportunity​ (a)   is defined as the cost of the ​ (b)   best ​ (c)   forgone when making a ​ (d)   . It arises because ​ (e)   have to make competing choices due to finite resources having alternative uses.

• cost
• opportunity
• next
• decision
• economic agents

Match each statement on top with the correct economic agent below.

• Producers

• Having to decide whether to spend tax revenue on education or healthcare

• Consumers

• Choosing to spend income on either a shirt or a book

• Government

• Deciding whether to invest resources in a new factory in China

• workers

• Choosing to specialise as either an accountant or a teacher

Match each term below with the correct description on top.

• Unlimited wants

• Consumers, producers, workers and governments

• Opportunity cost

• The cost of the next best opportunity forgone when making a deciison

• Scarce resources

• Resources are limited compared to society's unlimited wants

• Economic agents

• The factors of production: capital, enterprise, land and labour

• Economic problem

• Society's desire to consume more resources beyond the essentials needed for survival

Match each description of opportunity cost on top with the correct economic agent below.

• Consumers

• Spending more tax revenue on roads and having less to spend on hospitals

• Workers

• Tesla allocating its research budget to electric cars rather than petrol-fuelled cars

• Producers

• By specialising as a teacher, not being able to puruse a job as an accountant

• Governments

• Purchasing a holiday means less income available to spend on a new car