📚 Learning Guide
Opportunity Cost Analysis
hard

If a country decides to allocate more resources to healthcare instead of education, what concept best describes the cost of this decision?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Opportunity Cost

B

Marginal Cost

C

Total Cost

D

Sunk Cost

Understanding the Answer

Let's break down why this is correct

Answer

The concept that best describes the cost of allocating more resources to healthcare instead of education is called "opportunity cost. " Opportunity cost refers to what you give up when you make a choice. In this case, by choosing to invest more money and time in healthcare, the country is missing out on the benefits that could have come from improving education, such as a more skilled workforce. For example, if the government spends money on building new hospitals, it cannot use that same money to build new schools or hire more teachers. This means that while healthcare might improve, the potential advancements in education and their long-term benefits are sacrificed.

Detailed Explanation

Opportunity cost is what you give up when you make a choice. Other options are incorrect because Marginal cost is about the cost of producing one more unit of something; Total cost looks at all expenses involved.

Key Concepts

Opportunity Cost
Resource Allocation
Trade-offs
Topic

Opportunity Cost Analysis

Difficulty

hard level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.