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AS & A Level · AS/A Level

Economics

Scarcity and resource allocation

Name: ____________________Date: October 10, 2026
  1. 1.

    Fictional case: Luma council uses its only vacant site for a library instead of a clinic. Explain opportunity cost and identify it here.

    [2 marks] · no calculator
  2. 2.

    Explain why an economy can have unemployed workers and still face scarcity.

    [3 marks] · no calculator
  3. 3.

    Fictional case: on Nera's production frontier, output changes from 80 food units and 20 machines to 68 food units and 24 machines. Calculate the food opportunity cost per extra machine over this interval and explain why it need not be constant elsewhere.

    [3 marks]
  4. 4.

    Fictional case: a flood destroys factories in Vela while demand is unchanged. Distinguish a movement inside a production frontier from an inward shift and explain which description fits destruction.

    [4 marks] · no calculator
  5. 5.

    Fictional case: Orin has poor rural access to drinking water. Evaluate allocating water solely through market prices rather than public provision.

    [4 marks] · no calculator
  6. 6.

    Fictional case: Daro can expand either vocational training or current hospital care from a fixed budget. Evaluate the claim that training should always take priority because it expands future productive capacity.

    [4 marks] · no calculator

Original, unofficial practice questions from SubjectScout — not official past-paper questions.

Marking points are indicative, not an official mark scheme. Accept equivalent valid methods and supported interpretations that address the task; award each mark once without requiring the model wording.