Economics · May / June 2023 · Paper 12 · Question 3
2281Opportunity cost
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
As printed in the paper
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Correct answer: D. opportunity cost
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