The basic economic problem

Worked examples (6)

• 1Define 'opportunity cost' (2 marks)
• 2Define scarcity and explain why it is central (4 marks)
• 3Opportunity cost — apply to a government choice (6 marks)
• 4Opportunity cost in an environmental decision (6 marks)
• 5Discuss whether to clear rainforest for farming (8 marks)
• 6Discuss choosing the lowest-opportunity-cost option (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define a 'production possibility curve' (2 marks)
• 2Explain points on and inside the PPC (4 marks)
• 3Calculate opportunity cost on a PPC (6 marks)
• 4Analyse the goods vs environment trade-off on a PPC (6 marks)
• 5Discuss producing capital vs consumer goods (8 marks)
• 6Discuss whether economic growth is always good (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style