Edexcel IGCSE Economics 1.1.1.b opportunity cost
Practise opportunity-cost questions by identifying the next best alternative and applying it to consumer, firm or government choices.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Define opportunity cost as the next best alternative given up when choosing.
- Apply opportunity cost to a purchase, spending decision or government policy choice.
1.1.1.b Opportunity cost and its effect on economic agents question 1
[Maximum number: 3]
A firm has decided to purchase a new delivery vehicle.
Explain one possible opportunity cost for the firm of this decision.
AO2 3 marks
Award 1 mark for identifying a relevant opportunity cost
Award 1 mark for developing the opportunity cost
Award 1 mark for the response being in context
- One opportunity cost is Casper may not be able to buy a new phone (1) because he does not have enough money for both (1) so he has to sacrifice the next best alternative when using the money he has to buy the television (1)
Accept any other appropriate response
(3)
Question
number
With reference to the data above and your knowledge of economics, analyse two possible factors influencing Anastasia's decision to open a second club.
Indicative content
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