An economy allocates its scarce resources between the production of healthcare services and education services. The table below shows the maximum combinations of the two services that can be produced with its current resources and technology:
| Combination | Healthcare services (units) | Education services (units) |
|---|---|---|
| P | 0 | 600 |
| Q | 100 | 550 |
| R | 180 | 480 |
| S | 240 | 380 |
| T | 280 | 240 |
| U | 300 | 0 |
The economy is currently operating at combination R. If the government decides to move to combination S to increase healthcare services, what is the opportunity cost of this decision?
606060 units of healthcare services
100100100 units of education services
1.671.671.67 units of education services
380380380 units of education services
123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.