Scarcity, Opportunity Cost & Decisions at the Margin — Drills · Grade 12 Social Studies
Chapter: Economic Foundations & Market DecisionsWhat these drills covers
By the end of Scarcity, Opportunity Cost & Decisions at the Margin you should be able to:
- I can define the feasible alternatives.
- I can explain a civic or economic mechanism using evidence, assumptions, and a qualified conclusion.
4 questions, written answer, each with a worked explanation.
Vocabulary used: scarcity, opportunity cost, sunk cost, marginal, production frontier.
Problem 1
Answer and explanation
Limited time, materials, capacity, or other resources still have competing uses. A zero money price does not remove the alternative forgone or establish unlimited availability. Identify the scarce resource and feasible alternatives.
Problem 2
Answer and explanation
One booklet uses half an hour, during which four posters per hour would yield two posters. The cost is two posters per booklet under the stated constant rates. It is forgone feasible production, not an additional cash payment.
Problem 3
Answer and explanation
It is the same past cost under the remaining alternatives. The current decision turns on additional benefits, costs, and feasible options. Continuing solely to justify the sunk amount can add a further loss rather than recover it.
Problem 4
Answer and explanation
It describes feasibility and represented resource use, not who benefits or which combination people value. A choice on the boundary can be efficient in the model while differing in fairness or desirability. State the evaluative criterion separately.