A council has enough funding to carry out only one of three projects. It judges each project by the expected reduction in council spending each year, shown in the table, and chooses to replace its street lights with LED lamps.
| Project | Expected annual reduction in council spending |
|---|---|
| Replace street lights with LED lamps | £95,000 |
| Repair the town's footpaths | £72,000 |
| Upgrade the public toilets | £48,000 |
Explain the opportunity cost to the council of choosing to replace its street lights.
77 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.