Unit 1: Opportunity cost in the NHS

This BBC video clip and asociated article shows how NICE has to make choices on which drugs the NHS can be prescribed

http://news.bbc.co.uk/1/hi/health/7579495.stm video
http://news.bbc.co.uk/1/hi/health/7579422.stm article

More on the story can be found at

http://news.bbc.co.uk/1/hi/health/7546572.stm

a) What is meant by opportunity cost?
b) How does this decision by NICE illustrate the economic problem and the concept of opportunity cost?
c) Using a PPC, show the choices open to NICE