Scarcity, Choice and Opportunity Cost

Discuss whether it is likely that economies that have an increase in labour and a high rate of technological innovation will come nearer to solving the economic problem.

With the help of a diagram, explain the difference between a movement along a production possibility curve (PPC) and a shift of this curve and consider whether a decision to produce more of one product will always incur an equal opportunity cost.

Explain how the fundamental economic problem is addressed in a planned economy and in a market economy.

Explain, with the aid of a production possibility curve (PPC) diagram, why scarcity makes choice inevitable for firms and how each choice has an opportunity cost.

Explain how governments face increasing opportunity cost in their decision-making. Use a production possibility curve diagram to support your answer.

Discuss the factors that should be considered by the Malawian Government in deciding if it should develop its tourist industry and allow its tobacco industry to decline.

Use a production possibility curve to explain the opportunity cost that Ethiopia would face if it did not have access to help from China in building new infrastructure.

Explain what is meant by ‘The opportunity cost of Mexico’s new energy policy is huge.’

Explain one example of ‘what to produce’ in Malaysia that may have to change in order to meet the needs of its ageing population.

Explain what might be the opportunity cost if the Pakistan government agreed to pay subsidies to Pakistan’s farmers comparable to those paid to India’s farmers.