Which one of the following best describes the economic concept of 'opportunity cost'?
The financial expenditure required to purchase a scarce resource
The value of the next best alternative foregone when a choice is made
The reduction in output resulting from a misallocation of resources
The cost of producing an additional unit of a good or service
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.