Opportunity cost
1.3What the syllabus asks of you
- Opportunity cost: definition of opportunity cost
- Opportunity cost: examples of opportunity cost in different contexts
- The influence of opportunity cost on decision-making: decisions made by consumers, workers, producers/firms and governments when allocating their resources
Read the notes first
Chapter 1: Opportunity cost
Drill this topic
Every question on Opportunity cost, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
29 questions
1May / June 2026 · Paper 11 · Q2Show mark scheme →
Athe interest payment on the loan Moni takes for her business
Bthe losses Moni incurs while her business is new
Cthe salary Moni could have earned from her job
Dthe wages Moni will have to pay to workers in her business
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2May / June 2026 · Paper 12 · Q3Show mark scheme →
A$20
B$80
Cfour hours of leisure per day
D12 hours of leisure per day
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3Oct / Nov 2025 · Paper 12 · Q2Show mark scheme →
Aopportunity cost
Bscarcity
Cshortage
Dthe economic problem
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4Oct / Nov 2025 · Paper 13 · Q2Show mark scheme →
Aenvironmental damage
Bnext best alternative forgone
Coutput of labour
Dprice paid
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5Oct / Nov 2024 · Paper 12 · Q2Show mark scheme →
Athe allocation of resources in an economy
Bthe cost to the individual when they consume a good
Cthe lack of goods and services available to satisfy unlimited wants
Dthe next best alternative forgone when making an economic decision
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6Oct / Nov 2024 · Paper 13 · Q3Show mark scheme →
A$10
B$40
C3 hours of leisure per day
D6 hours of leisure per day
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7May / June 2024 · Paper 11 · Q2Show mark scheme →
A$18 000
B$20 000
C$90 000
D$100 000
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8May / June 2024 · Paper 12 · Q2Show mark scheme →
A$10 000
B$12 000
C$25 000
D$32 000
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9May / June 2023 · Paper 12 · Q3Show mark scheme →
Aexternal cost
Bfree goods
Cmarket disequilibrium
Dopportunity cost
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10Oct / Nov 2022 · Paper 12 · Q1Show mark scheme →
Adiseconomies of scale
Bmarket forces
Copportunity cost
Dspecialisation
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11Oct / Nov 2022 · Paper 13 · Q1Show mark scheme →
Adiseconomies of scale
Bmarket forces
Copportunity cost
Dspecialisation
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12May / June 2022 · Paper 11 · Q12Show mark scheme →
Aan opportunity cost equal to $95
Ban opportunity cost equal to other goods she could have bought for $5
Cno opportunity cost, as entrance to the party is free
Dno opportunity cost, as she had no better way of using the time
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13May / June 2022 · Paper 12 · Q2Show mark scheme →
Aan opportunity cost equal to $95
Ban opportunity cost equal to other goods she could have bought for $5
Cno opportunity cost, as entrance to the party is free
Dno opportunity cost, as she had no better way of using the time
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14Oct / Nov 2021 · Paper 12 · Q2Show mark scheme →
Athe potential interest earned if the holiday money had been saved
Bthe price paid for an air ticket to the holiday destination
Cthe rubbish created during the holiday which affects the local community
Dthe satisfaction that the consumer gains from the holiday
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15May / June 2021 · Paper 11 · Q2Show mark scheme →
Athe ability to increase his purchasing power
Bthe additional time travelling to and from work
Cthe increased hourly earnings of $7.50
Dthe ten hours of leisure time
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16May / June 2021 · Paper 12 · Q3Show mark scheme →
Athe cost of installing wind turbines
Bthe loss of revenue from crops that grow on the land
Cthe profit made from selling the land
Dthe reduced cost of producing renewable energy
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17May / June 2020 · Paper 12 · Q3Show mark scheme →
A$10 000
B$12 000
C$25 000
D$32 000
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18Oct / Nov 2019 · Paper 12 · Q3Show mark scheme →
Agoing to a cricket match
Bwatching the annual town parade
Cvisiting relatives
Dlosing his Saturday free time
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19Oct / Nov 2019 · Paper 13 · Q3Show mark scheme →
Agoing to a cricket match
Bwatching the annual town parade
Cvisiting relatives
Dlosing his Saturday free time
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20May / June 2019 · Paper 11 · Q3Show mark scheme →
Acost of water
Bloss of farmland
Csales of golf equipment
Dwages of golf course staff
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21May / June 2019 · Paper 12 · Q3Show mark scheme →
Acost of water
Bloss of farmland
Csales of golf equipment
Dwages of golf course staff
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22May / June 2018 · Paper 11 · Q1Show mark scheme →
Acost of production
Bfinite resources
Copportunity cost
Dproduction possibility frontier
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23Oct / Nov 2017 · Paper 13 · Q2Show mark scheme →
Abudget surplus; external cost
Bfactor of production; private monopoly
Cpublic sector; opportunity cost
Dtrade surplus; budget deficit
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24May / June 2017 · Paper 11 · Q2Show mark scheme →
Ademand and supply, government subsidy
Bexcess demand, resource allocation
Cfactors of production, private monopoly
Dopportunity cost, public sector
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25May / June 2017 · Paper 12 · Q2Show mark scheme →
Athe allocation of government funds to the area instead of on a new airport
Bthe cost of providing shelter for those made homeless
Cthe decline in the tourist industry in the area
Dthe loss of profits from businesses affected by the flood
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26Oct / Nov 2016 · Paper 12 · Q2Show mark scheme →
Athe running costs of the power station
Ba coal-fired power station
Cthe current value of the power station
Dthe cost of building the power station
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27Oct / Nov 2016 · Paper 13 · Q2Show mark scheme →
Athe running costs of the power station
Ba coal-fired power station
Cthe current value of the power station
Dthe cost of building the power station
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28May / June 2016 · Paper 11 · Q3Show mark scheme →
A$10
B$40
C3 hours of leisure per day
D9 hours of leisure per day
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29May / June 2016 · Paper 12 · Q2Show mark scheme →
A$20
B$80
C4 hours of leisure per day
D12 hours of leisure per day
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