O Levels Economics (2281)•2281/12/M/J/19

Explanation
Opportunity Cost of Resource Allocation
Steps:
- Identify opportunity cost as the value of the best alternative use of resources forgone.
- Recognize that golf courses require land and water, which have alternative uses in China.
- Consider land use: expanding golf courses likely converts agricultural land, given China's farmland scarcity.
- Evaluate impacts: water use is direct cost, but land conversion leads to lost food production as the key trade-off.
Why B is correct:
- Opportunity cost definition: the highest-valued alternative forgone; here, land for golf courses means lost farmland productivity, essential for China's food security.
Why the others are wrong:
- A: Direct monetary cost of water, not the forgone alternative.
- C: Potential benefit from golf, not a cost or trade-off.
- D: Explicit labor expense, not an opportunity cost.
Final answer: B
Topic: Opportunity cost
Practice more O Levels Economics (2281) questions on mMCQ.me