gcse economics - choice and opportunity cost
Economic choice - is deciding between different uses of scarce resources
Opportunity cost - is the benefit that is lost in making a choice between two competing uses of scarce resources. It is the next best alternative.
Examples of Opportunity Cost
Allocation of Resources
This is about how resources are allocated between competing uses
Examples
* Coca Cola decide to spend £50 billion on advertising
* The government decides to spend £100 billion on hospitals
* An individual allocates their time to study rather than playing football
ACTION
1. Think of an opportunity cost that you have experienced
recently
a) with money
b) with your time
2. What could be an opportunity cost of you staying in the sixth form at school?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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