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Opportunity cost and its application
Practice Questions

20 CIE IGCSE Economics questions on Opportunity cost and its application, each with instant feedback and a full examiner-style mark scheme.

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Try 2 sample questions on Opportunity cost and its application

Question 1 · 1 mark · Difficulty 1/3

Which of the following best defines opportunity cost?

  1. The next best alternative foregone when making a choice
  2. The additional cost of producing one more unit of output
  3. The average cost of all alternatives that were not chosen
  4. The total money spent on purchasing a good or service
Show answer & explanation
✓ Answer: A — The next best alternative foregone when making a choice
Opportunity cost is defined as the next best alternative that is given up when a decision is made. Option A describes monetary cost, not opportunity cost. Option C describes marginal cost. Option D is incorrect because opportunity cost refers only to the single next best alternative, not the average of all alternatives.
Question 2 · 1 mark · Difficulty 2/3

A government spends $50 million building a new hospital. The next best use of that money was improving roads. What is the opportunity cost of building the hospital?

  1. The future running costs of the new hospital
  2. The $50 million spent on the hospital itself
  3. All the infrastructure projects that could have been funded
  4. The improved roads that were not built
Show answer & explanation
✓ Answer: D — The improved roads that were not built
The opportunity cost is the next best alternative foregone, which in this case is the road improvements that were sacrificed. Option A is the monetary cost, not the opportunity cost. Option B incorrectly identifies all possible alternatives rather than just the next best one. Option D refers to future costs, which are not the opportunity cost of the original decision.
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20 questions · 25 min · free

CIE IGCSE Economics: Opportunity cost and its application FAQ

How many CIE IGCSE Economics questions on Opportunity cost and its application are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Opportunity cost and its application for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Opportunity cost and its application practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Opportunity cost and its application questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Opportunity cost and its application typically tested on CIE IGCSE Economics papers?
Opportunity cost and its application appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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