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    1 3 Opportunity Cost QpYBfUbjtpcPwB7z

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    Minh Trần Quang

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    1 3 Opportunity Cost QpYBfUbjtpcPwB7z

    Uploaded by

    Minh Trần Quang
    17 views6 pages

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    1-3-opportunity-cost-QpYBfUbjtpcPwB7z

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    17 views6 pages

    1 3 Opportunity Cost QpYBfUbjtpcPwB7z

    Uploaded by

    Minh Trần Quang

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    IGCSE CIE Economics 32 mins 8 questions

    Paper 2

    1.3 Opportunity Cost


    1.3.1 Opportunity Cost in Decision Making

    Easy (4 questions) /8 Scan here for your answers


    or visit savemyexams.com
    Medium (2 questions) /8

    Hard (2 questions) /16

    Total Marks /32

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 1
    Easy Questions
    1 Explain one opportunity cost of conserving forests in Indonesia.

    Refer to the source material in your answers

    (2 marks)

    2 Explain, using information from the extract, an opportunity cost of working.

    Refer to the source material in your answers

    (2 marks)

    3 In 2017, the UK included bicycle helmets for the first time in its calculation of the
    consumer prices index (CPI). Many bicycle retailers now provide their customers with a
    choice of bicycle helmets. Estimates show that 25 million bicycle helmets are sold
    globally per year and the number sold is on a steady upward trend.

    Define choice and give an example.

    (2 marks)

    4 Swaziland is a small African country where six in ten people live in poverty and most
    firms are small and use little capital equipment. In October 2015 it opened a new airport.
    Some economists suggest that the building of the airport involved a high opportunity
    cost and caused a range of external costs. The building of the airport is part of the
    government’s plan to turn the country from a developing into a developed country.

    Identify the opportunity cost of building an airport?

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 2
    (2 marks)

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 3
    Medium Questions
    1 Explain an example of opportunity cost in the extract.

    Refer to the source material in your answers.

    (4 marks)

    2 Explain, using information from the extract, how the concept of opportunity cost affects
    all rubber farmers in Liberia.

    Refer to the source material in your answers.

    (4 marks)

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 4
    Hard Questions
    1 In Tunisia, resource allocation decisions are made by both the public sector and private
    sector. Tunisia’s GDP increased from 2014 to 2018 but its households saved less. Income
    levels can be affected by changes in trade union activity and the foreign exchange rate.
    From 2014 to 2018, Tunisia experienced a number of strikes organised by its largest
    trade union, the Tunisian General Labour Union. There was also a significant fall in its
    foreign exchange rate.

    Discuss whether or not opportunity cost is important when making decisions about
    resource allocation

    (8 marks)

    2 Swaziland is a small African country where six in ten people live in poverty and most
    firms are small and use little capital equipment. In October 2015 it opened a new airport.
    Some economists suggest that the building of the airport involved a high opportunity
    cost and caused a range of external costs. The building of the airport is part of the
    government’s plan to turn the country from a developing into a developed country.

    Discuss whether or not opportunity cost influences decision-making by consumers and


    firms

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 5
    (8 marks)

    © 2024 Save My Exams, Ltd. Get more and ace your exams at savemyexams.com 6

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