A government has enough additional revenue either to reduce bus fares or to improve rural broadband. It chooses broadband after estimating that it creates the larger total benefit. What has happened to the opportunity cost of this decision?
It has disappeared because the preferred option has the larger benefit
It equals the benefit that would have resulted from lower bus fares
It equals the money spent on broadband plus the money not spent on buses
It is the benefit of every possible alternative added together
29 exam-style questions on OCR GCSE Economics 1.2 The basic economic problem, covering 1.2.1 Scarce resources and unlimited wants, 1.2.2 The economic problem, 1.2.3 Opportunity cost, and 1.2.4 Costs and benefits of economic choices. Each one has a worked solution and a mark scheme showing where the marks go.