Economics · May / June 2017 · Paper 12 · Question 2

Heavy rain caused floods in an area of a country. What may be an opportunity cost of repairing the damage caused?

1. Athe allocation of government funds to the area instead of on a new airport
2. Bthe cost of providing shelter for those made homeless
3. Cthe decline in the tourist industry in the area
4. Dthe loss of profits from businesses affected by the flood

As printed in the paper