The economic problem creates choices and opportunity cost. People must decide which job to take and where to live. In recent years Australia has hired teachers from several countries, including Canada, the UK and the US. Most of these teachers focus on only one subject.
(a)[2]
Define opportunity cost in economics.
(b)[4]
Explain what the economic problem is and why it is likely to keep arising.
(c)[6]
Analyse why the wages of all teachers could rise.
(d)[8]
Discuss whether a teacher would, or would not, benefit from specialisation.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Next-best alternative” …