The concept of opportunity cost ?
Correct answer: B. Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.
- A. is relevant only for a capitalist economy like the United States.
- B. Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.
- C. Suggests all our wants can be achieved.
- D. Would be relevant if we eliminated poverty
Explanation
Opportunity cost means that choosing one use of scarce resources sacrifices the next-best alternative. More public health spending therefore leaves fewer resources for other government priorities, making expansion in those areas harder.
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