A family plans to buy a car, but then learns that insurance will cost much more than expected. The benefits of owning the car are unchanged. What is the most likely effect on its decision?
The car's opportunity cost disappears because insurance is compulsory
The higher insurance cost raises every benefit from owning the car
The net benefit of the car falls, so an alternative such as public transport becomes more attractive
The original choice must remain best because it was considered first
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.