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A Level Economics (9708)•9708/13/O/N/19
Question 3 from 9708/13/O/N/19

Explanation

Opportunity cost of car travel vs. bus and train

Steps:

  • Identify the costs of each travel option from the given information.
  • Calculate the monetary cost of bus and train as the next best alternative.
  • Subtract the bus/train cost from the car cost to find the direct difference.
  • Note that opportunity cost includes only the foregone alternative's value, not time or other factors unless specified.

Not enough information: The query references "this information" but provides no details on costs, making calculation impossible.

Why A is correct:

  • Cannot confirm without data, but if A ($2) matches the cost difference per the definition of opportunity cost as the value of the next best alternative.

Why the others are wrong:

  • B ($4): Likely overstates the difference if info shows a smaller gap.
  • C ($5): Incorrect if it includes extraneous factors beyond direct costs.
  • D ($12): Far exceeds typical transport cost differences without evidence.

Final answer: A

Topic: Scarcity, choice and opportunity cost

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