IB skill practice

Explain scarcity, choice, opportunity cost, and PPCs

Economics SL skill with original exam-style diagram and data-response seeds.

Paper 1, Paper 2 5 marks Difficulty 4

Use scarcity and opportunity cost

A New Zealand tourism market extract states that a local council can fund either a library upgrade or extra bus services, but not both this year. Explain the opportunity cost of choosing the bus services. Enter the answer and choose the interpretation that best matches the economic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.