Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

A king has recently been reported to work as a part-time pilot for a multinational airline. Some pilots and police officers have resigned from their jobs to become teachers, while others have left to become sole traders. The wages teachers receive differ with age.
(a)[2]

Define the term wages.

(b)[4]

Explain why the opportunity cost of becoming a teacher for one worker may be higher than for another worker.

(c)[6]

Analyse how an individual's earnings are likely to vary across her or his lifetime.

(d)[8]

Discuss whether most people would rather work for a multinational company (MNC) or for a sole trader.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Money paid to a worker

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