A council can choose only one project. A health centre is expected to create benefits worth £12 million, a library £9 million and a sports hall £7 million. It chooses the health centre. What is its opportunity cost?
£16 million, because the benefits of both rejected projects are added
£12 million, because this is the benefit of the chosen project
£7 million, because the sports hall has the lowest benefit
£9 million, because the library is the next best alternative
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.