Economics – Basic concepts – Short Questions (1990-2008) – Marking Scheme

1. 1990.Q.1(a)(i)
Cost of being a housewife (e.g. income earned by a lawyer) > cost of being a lawyer (e.g. payment to a Filipino
maid)
2. 1990.Q.4(c)(i)
(No). Alternatively Mr Lee can sell these quota in the market and make money. The opportunity cost is 4
the sum of money thus forgone.

3. 1991.Q.2(a)
(i) Opportunity cost is the highest-valued option or the best alternative that has to be forgone. 2
Occupational mobility is the ease with which a factor moves from one occupation/trade/industry 2
to another occupation/trade/industry.
(ii) In changing occupation, the opportunity cost of a doctor. (in terms of income forgone) can be very 3
high.
The cost to be a person of being a doctor is lower than the cost to him of taking up a new 3
occupation.

4. 1992.Q.2(a)(i)
the highest-valued option or the best alternative that has to be forgone. 2

5. 1993.Q.5(a)

6. 1995.Q.10(a)(i)
(I) Opportunity cost is the highest-valued option forgone. 2
(II) Her service, time, or other resources used in the performance had alternative uses. 1
(Only one example is required.) 1
(III) - Prestige / increased no. of fans/more popular 1@,
- Experience gained Max: 2
- Enjoyment in performing the shows
- Any other relevant point
(Mark the FIRST TWO points only.)

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Economics – Basic concepts – Short Questions (1990-2008) – Marking Scheme

7. 1996.Q.1

8. 1997.Q.11(b)

9. 1998.Q.1

10. 1999.Q.1

11. 2000.Q.10(b)(ii)

12. 2001.Q.10(d)

13. 2002.Q.10(c)

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Economics – Basic concepts – Short Questions (1990-2008) – Marking Scheme

14. 2003.Q.11(b)(i)

15. 2004.Q.2

16. 2005.Q.9(b)(ii)

17. 2005.Q.9(c)

18. 2006.Q.2

19. 2007.Q.10(c)

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Economics – Basic concepts – Short Questions (1990-2008) – Marking Scheme

20. 2008.Q.9(b)(i)
(b)(i) Identification of the opportunity cost as the value of depositing money with banks / as the 2
interest return from bank deposits.
(1) Yes, because 1
The interest return from bank deposits increases. 1
(2) No, because 1
The tax affects the value of stock market investments but not the cost. 1

1.2 Goods
1. 1991.Q.2(c)(iii)
 No one is willing to incur a cost getting it. (any one),
 The supply is so abundant that it satisfies all human wants for it. 2
The case of a free good: 2
 E.g. oxygen for normal breathing
The case of an economic good: 2
E.g. concentrated oxygen

2. 1994.Q.1
Not a free good. 1
- Resources used in providing the bus service have alternative uses. /
- There are costs of using the resources in providing the bus service. Anyone, 4
- More of the bus services is preferred to less.
(Remark: mere mention of the definition of free good – max. 2 marks.)

3. 2000.Q.1
E.g. The ice-field in the Polar regions is a free good because the quantity available is sufficient to satisfy 2
all our wants for it / no sacrifice of resources of the economy is involved / any appropriate explanation
E.g. Ice cubes in a glass of soft drink are economic goods because the quantity available is insufficient 2
to satisfy all our wants for it / one has to pay a cost to obtain it / any appropriate explanation

4. 2002.Q.1
Not free goods because 1
The resources used to produce them have alternative uses/ there is a cost to society of producing them / 2
the quantity available is insufficient to satisfy all our wants for them / any appropriate explanation

5. 2004.Q.1

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Economics – Basic concepts – Short Questions (1990-2008) – Marking Scheme

1.3 Economic Systems

1. 1996.Q.10d

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