A driver makes the following estimates in considering the purchase of a car which she intends to use only when she would otherwise have used public transport. \$ --- --- purchase price of car 6000 value of car after one year 4500 car operating and repair costs, insurance and taxation for one year 1800 cost of using public transport for one year instead of travelling by car 800 potential earnings after tax on \$6000 invested for one year 500 What will be the opportunity cost…

Economics 9708/11 — May/June 2016

Cambridge AS Level · AS Level Multiple Choice · answer key with instant marking and worked solutions

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Topics Methods of Government Intervention in Markets · Elasticities of Demand · Production Possibility Curves · Demand and Supply · International Trade and Comparative Advantage · Aggregate Demand and Aggregate Supply · +11 more

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Q11MScarcity, Choice and Opportunity CostFree sample

A driver makes the following estimates in considering the purchase of a car which she intends to use only when she would otherwise have used public transport.

	$
purchase price of car	6000
value of car after one year	4500
car operating and repair costs, insurance and taxation for one year	1800
cost of using public transport for one year instead of travelling by car	800
potential earnings after tax on $6000 invested for one year	500

What will be the opportunity cost in monetary terms to the driver over the year of travelling by car rather than by public transport?

Options

A $1500
B $3000
C $3700
D $7800

The rest of this paper

29 more questions

Q2Economic Systems1M
Q3Production Possibility Curves1M
Q4Production Possibility Curves1M
Q5Demand and Supply1M
Q6International Trade and Comparative Advantage1M
Q7Elasticities of Demand1M
Q8Elasticities of Demand1M
Q9Price Elasticity of Supply · Market Equilibrium and the Price Mechanism1M
Q10Demand and Supply1M
Q11Methods of Government Intervention in Markets1M
Q12Demand and Supply1M
Q13Consumer and Producer Surplus1M
Q14Methods of Government Intervention in Markets1M
Q15Price Elasticity of Supply · Elasticities of Demand · Methods of Government Intervention in Markets1M
Q16Elasticities of Demand · Methods of Government Intervention in Markets1M
Q17Income and Wealth Inequality1M
Q18Methods of Government Intervention in Markets1M
Q19Aggregate Demand and Aggregate Supply1M
Q20Aggregate Demand and Aggregate Supply1M
Q21Price Stability1M
Q22Price Stability1M
Q23Balance of Payments1M
Q24Exchange Rates1M
Q25International Trade and Comparative Advantage1M
Q26Production Possibility Curves · International Trade and Comparative Advantage1M
Q27Protectionism1M
Q28Supply-Side Policy1M
Q29Balance of Payments1M
Q30Aggregate Demand and Aggregate Supply · Balance of Payments1M

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