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
17 exam-style questions on Edexcel A A Level Economics 1.1.3 The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.