Scarcity, choice and opportunity cost
1.1What the syllabus asks of you
- fundamental economic problem of scarcity
- need to make choices at all levels (individuals, firms, governments)
- nature and definition of opportunity cost, arising from choices
- basic questions of resource allocation: what to produce
- basic questions of resource allocation: how to produce
- basic questions of resource allocation: for whom to produce
Drill this topic
Every question on Scarcity, choice and 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.
24 questions
1May / June 2026 · Paper 11 · Q1Show mark scheme →
Aclothing
Bfood
Choliday
Dwater
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2May / June 2026 · Paper 11 · Q3Show mark scheme →
AA rise in students failing to complete accountancy degree courses.
BA rise in the hours worked by trainee accountants.
CA rise in the university tuition fees for accountancy degree courses.
DA rise in the wage rate for trainee accountants.
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3May / June 2026 · Paper 13 · Q1Show mark scheme →
AWhat to produce, how to produce and for whom to produce?
BWhat to produce, where to produce and for whom to produce?
CWhere to produce, for whom to produce and how to produce?
DWhere to produce, what to produce and how to produce?
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4May / June 2026 · Paper 14 · Q1Show mark scheme →
AThere are limited resources and unlimited wants.
BThere are limited resources and limited wants.
CThere are unlimited resources and limited wants.
DThere are unlimited resources and unlimited wants.
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5Oct / Nov 2025 · Paper 12 · Q4Show mark scheme →
Aa decrease in the wages paid to apprentice engineers
Ba decrease in the number of students studying engineering degrees
Ca decrease in the number of top grade engineering degrees awarded
Da decrease in the length of an engineering apprenticeship to four years
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6Oct / Nov 2025 · Paper 13 · Q3Show mark scheme →
Athe faster growth of services than of manufacturing
Bthe need for an increased level of imported raw materials
Cthe need for greater government intervention
Dthe reduction of consumption if growth requires investment
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7May / June 2025 · Paper 12 · Q2Show mark scheme →
Achoice → opportunity cost → scarcity
Bchoice → scarcity → opportunity cost
Cscarcity → choice → opportunity cost
Dscarcity → opportunity cost → choice
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8May / June 2025 · Paper 13 · Q3Show mark scheme →
A20 units of good X
B30 units of good X
C120 units of good X
D170 units of good X
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9May / June 2024 · Paper 11 · Q1Show mark scheme →
A$40
B$80
C$120
D$160
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10May / June 2024 · Paper 11 · Q4Show mark scheme →
ADemand fluctuates according to price changes.
BSupply is insufficient to meet demand.
CTheir use is restricted because of harmful pollution.
DThey are being replaced by renewable energy sources.
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11May / June 2024 · Paper 13 · Q4Show mark scheme →
Athe existence of sufficient resources to meet all needs and wants
Bproducers consistently produce in excess of demand
Cthe government has a surplus budget
Dthere is equilibrium in all markets
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12Feb / March 2024 · Paper 12 · Q3Show mark scheme →
Alimited / limited
Blimited / unlimited
Cunlimited / limited
Dunlimited / unlimited
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13Feb / March 2024 · Paper 12 · Q5Show mark scheme →
Aall the other things the person could have bought
Bthe cost of getting to the sports shop
Cthe current value of the person’s old pair of shoes
Dthe next best thing that could have been bought with the $20
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14Oct / Nov 2023 · Paper 11 · Q1Show mark scheme →
Athe control of the market system
Bthe efficient allocation of scarce resources
Cthe preservation of a healthy environment
Dthe elimination of hunger
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15Oct / Nov 2023 · Paper 13 · Q3Show mark scheme →
ALuke has a larger opportunity cost than Zoe for making bracelets.
BThe opportunity cost of producing rings is constant for both Luke and Zoe.
CZoe should specialise in making rings.
DZoe's opportunity cost for each bracelet is 2 rings.
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16May / June 2023 · Paper 11 · Q2Show mark scheme →
Aa cost of $400 000
Ba cost of $800 000
Cthe cost of healthcare for cancer patients
Dthe loss of some new buildings
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17May / June 2023 · Paper 12 · Q7Show mark scheme →
AIn Britain, oil has zero opportunity cost.
BIn Japan, there is self-sufficiency in oil.
CIn Russia, there is no shortage of oil.
DIn the United States, rationing is the only solution to oil shortage.
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18May / June 2023 · Paper 13 · Q2Show mark scheme →
Aincreased leisure time for employees
Blives that are saved due to reduced disease levels
Cthe production of goods by essential businesses
Dthe loss of goods from the closed businesses
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19Feb / March 2023 · Paper 12 · Q10Show mark scheme →
AThe choices people make are not dependent on income inequalities.
BConsumers pay the same prices for goods and services to satisfy their wants.
CHuman wants exceed what can be produced from available resources.
DNatural resources are unevenly distributed amongst nations.
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20Oct / Nov 2022 · Paper 11 · Q4Show mark scheme →
Athe risk of mistakes caused by tiredness
Bthe possible costs of illness caused by high stress levels
Cthe potential salary as a teacher
Dthe retraining costs of becoming a teacher
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21May / June 2022 · Paper 11 · Q3Show mark scheme →
Ahow, when, where
Bhow, where, for whom
Cwhat, how, for whom
Dwhat, when, where
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22May / June 2022 · Paper 13 · Q3Show mark scheme →
Athe benefits of a good compared with the next choice
Bthe benefits given up by not consuming the next best alternative
Cthe costs of any good not chosen
Dthe financial costs of consuming a good
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23Oct / Nov 2021 · Paper 11 · Q16Show mark scheme →
AHigher education is less likely to be provided by the private sector.
BResources in higher education will be allocated through the price mechanism.
CThe demand for higher education will be perfectly elastic when the price is zero.
DThe opportunity cost of higher education to students will be zero.
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24Feb / March 2021 · Paper 12 · Q1Show mark scheme →
ABarcelona
BLondon and Venice
CParis
DLondon, Paris and Venice
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