(a)[2]
Define what opportunity cost means.
(b)[4]
Explain the economic problem and why it is likely to exist at all times.
(c)[6]
Analyse why the wages of all teachers may rise.
(d)[8]
Discuss whether a teacher would gain from specialisation.
Economics 2281 · O Level · Opportunity cost
Opportunity cost — practice question
The economic problem creates choices and opportunity cost. People must decide which job to take and where to live. Over recent years Australia has hired teachers from several countries, including Canada, the UK and the US. Most of these teachers specialise in one subject.