Economics · Introduction to Economics
A policymaker faces a choice between allocating additional budget to infrastructure or education. Both yield social benefits, but limited fiscal space means funding one reduces resources for the other. This decision highlights the fundamental economic concept of resource scarcity and the necessity of making trade-offs between competing priorities, which represents:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Absolute advantage
- 2Comparative advantage
- 3Opportunity cost✓
- 4Marginal utility
Correct answer
Opportunity cost
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