Show model answer and explanation
opportunity cost
It is what is sacrificed by making the choice.
Class 11 · English Medium · Cambridge · Economics
Scarcity, choice and resource allocation
Explain scarcity, opportunity cost and a production trade-off.
Shared cross-level core and stretch unit. Start with the core questions, then use the stretch example for deeper work. The same unit is available in related class and board pathways; it is not a full grade-specific or examination-specification course. A teacher should select the appropriate depth and further topics.
Learn the idea
Scarcity means available resources cannot meet every possible want at once. A choice has an opportunity cost: the value of the next-best alternative forgone. It is not the sum of all rejected alternatives. A production possibility boundary describes feasible combinations under stated resources and technology.
Worked example
A student has one study hour and chooses maths instead of the next-best option, English. The opportunity cost is the English study forgone. This is not necessarily a money payment.
- State the scarce resource.
- Identify feasible alternatives.
- Compare the next-best alternative, not every possible use.
Stretch example
A bowed-out production boundary represents increasing opportunity cost: resources suited to one activity become less productive when shifted to the other. A straight boundary instead assumes a constant trade-off.
Your written practice
Show your working on paper and enter your answer here. If it does not match, compare the model and try again.
Show model answer and explanation
yes
It is limited and has alternative uses.
Show model answer and explanation
5
100/20 = 5.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
Using it consumes time and other resources with alternative uses.
Distinguish price from resource cost.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
Some resources may be unemployed or used inefficiently.
Keep the statement conditional on the model.
Show model answer and explanation
2
6/3 = 2.
Write in your own words. A guardian or teacher should review this response.
Show model answer and explanation
Moving along reallocates existing capacity; shifting changes capacity through resources or technology.
State the different causes.
Choice diagram
Draw a fictional production boundary and explain two choices.
Review with a guardian or teacher
- Label both outputs.
- Identify the forgone alternative.
- State assumptions about capacity.
Keep your work on paper or in a local file. This page does not upload it or automatically grade the project.
Teacher-led lessons, schedules and prices for this outline are upcoming. You can use any starter practice above now without booking.
Your next step
Solo practice works without an account. Sign in to save a practice record to your learner profile.
Keep practising
Exact lesson links and related activities are labelled separately. Return-to-course links retain your selected learning path.