What is an opportunity cost?
-Cost of best alternative forgone-Can be applied to firms, consumers and government (our main groups for micro)-Give some examples or see if they can come up with their own
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Related Economics GCSE answers
All answers ▸Following a period of negative economic growth, explain how total government spending and tax revenues are likely to be affected.
What is the basic economic problem?
Evaluate the use monetary policy to aid the economy's recovery just after a recession.
8 What is likely to happen when the rate of interest increases? A) consumer spending increases B) firms buy fewer machines C) people hold more cash D) savers earn lower rewards