Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

In 2020, pay to Mexican workers, including those in the primary sector, declined. This decline helped cause a 9% increase in poverty across the country. In that same year, many small and medium-sized firms shut down. The country also faced traffic congestion. Its capital, Mexico City, is the world’s most congested city.
(a)[2]

Identify two possible opportunity costs arising from producing primary sector products.

(b)[4]

Explain two policy measures that may lower poverty.

(c)[6]

Analyse how the closure of firms may harm consumers.

(d)[8]

Discuss whether a government ought to encourage people to walk to school and work.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Secondary sector manufactured goods not produced

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