A regional health authority operating with a fixed capital budget of £40 million must allocate its resources between two medical treatments: elective hip replacements at a cost of £8,000 per procedure, or oncology treatments at a cost of £40,000 per course of treatment.
If the authority decides to allocate £10 million of its budget to oncology treatments and spends the remaining £30 million on hip replacements, what is the opportunity cost of this decision?
250250250 oncology treatments
3,7503,7503,750 hip replacements
1,2501,2501,250 hip replacements
5,0005,0005,000 hip replacements
85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.