The government uses a limited capital budget for flood defences instead of its next-best project, renovating hospitals. Which description is accurate?
Flood protection is the opportunity cost because it receives the money
Hospital renovation is the opportunity cost, while protected households may benefit from the chosen spending
No choice has been made because both projects provide public benefits
Taxpayers are the only economic group affected by either project
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.