Opportunity Cost

Using an example, explain why governments face opportunity costs in decision making?

Choosing to allocate money to one industry or another (e.g Education over Transport). Cost is where they didn't put the money

Why do consumers face opportunity costs in decision making?

Consumers can change where the demand is for different products, buying one product over another

What might be the opportunity cost of a student studying IGCSE Economics?

Not being able to study another subject

Using an example, explain why producers face opportunity costs in decision making?

Producers have to supply the demand, whatever they make, they would have made something else, e.g choosing to make one product instead of another

Why do workers face opportunity costs in decision making?

Working for one producer over another

What is opportunity cost?

the cost of the next best opportunity forgone (given up) when making economic decisions.