ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the expense of installing drainage
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the natural environment that is lost
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the profits of the companies
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the value of the land cleared
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Detailed explanation-1: -Examples of economic problems include How to deal with external costs/pollution, e.g. pollution from production. How to redistribute income to reduce poverty, without causing loss of economic incentives. How to provide public goods (e.g. street-lighting) which are usually not provided in a free market.
Detailed explanation-2: -Economics is a social science that focuses on the production, distribution, and consumption of goods and services, and analyzes the choices that individuals, businesses, governments, and nations make to allocate resources.
Detailed explanation-3: -An economy is a system of inter-related production and consumption activities that ultimately determine the allocation of resources within a group. The production and consumption of goods and services as a whole fulfill the needs of those living and operating within it.