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Economics IGCSEPDF 11
118 pagesrevision 46932
PDF 11
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Answer and Explanation:
B
is the correctanswer. Occupational mobility is the ability of a worker to change occupations.
Retraining schemes wouldimprove a worker's skills, making their skill base more transferable
and thus increasing their occupational mobility.
A and D primarily affect geographical mobility.
Opportunity cost is defined as the next best alternative forgone when an economic decision
is made.
• It's the value of the choice that you did not pick, which was the second-best option.
• Opportunity cost is not necessarily a monetary amount; it is the benefit that could have been
gained from the next-best use of the resources (time, money, land, etc.).
Decision Made: A student attends a concert.
Next Best Alternative Forgone (Opportunity Cost) :
The knowledge and preparation that
could have been gained from
Consumers (Households) allocate their limited income to satisfy their unlimited wants and
needs.
Decision :What to buy?
Allocation of Resources: Allocating income between different goods and services to maximize
utility (satisfaction).
Opportunity Cost : Choosing to buy a new smartphone means forgoing the opportunity to save
that money or buy a laptop.
Producers (Firms) allocate the Factors of Production (land, labour, capital, and enterprise) to
produce specific goods and services. Their primary goal is typically profit maximisation.