The Norwegian government chose to spend the profits from oil on stocks, bonds and property. The possibility of improving domestic infrastructure, therefore, was not taken. Which economic concept does this best illustrate?

OPPORTUNITY COST

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	cost of production
B	finite resources
C	opportunity cost
D	production possibility frontier

Explanation:

Detailed explanation-1: -Norway has a mixed economic system with a combination of free-market activity and government intervention. Norway is a member of the European Free Trade Association (EFTA).

Detailed explanation-2: -Oil, gas, seafood, and products from energy-intensive industry are among our main export commodities. Our sea areas are six times the size of our land area, and our ocean-based industries account for almost 40 % of our total value creation, and 70 % of our exports.

Detailed explanation-3: -IGCSE Economics Topic Questions on FACTORS OF PRODUCTION Paper 1. Land: The word land refers to all the natural resources. Oil, coal, natural gas, metals, stone and sand are natural resources. Other natural resources are air, sunlight, soil and water.

Detailed explanation-4: -In 2021, the share of agriculture in Norway’s gross domestic product was 1.61 percent, industry contributed approximately 35.54 percent and the services sector contributed about 52.5 percent.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

OPPORTUNITY COST