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A Level Economics Last Minute Revision Sheets

A Level Economics Last Minute Revision Sheets

  • Following is an example of a Last Minute Revision Sheet for  Scarcity, Choice and Opportunity cost
  • A  small list of examiner expectation has been provided, note that the list can be vast based on the type of application of the concepts.

 

1.1 Scarcity, Choice and Opportunity Cost

A Level Economics — Last Minute Revision Sheets

Core Concept

Scarcity exists because resources are limited while wants are unlimited. This forces choice and leads to opportunity cost — the next best alternative forgone.

What Examiners Expect

  • Define scarcity, choice, and opportunity cost.
  • Apply each to consumers, firms, and governments.
  • Use and correctly label a PPC diagram showing trade-offs.
  • Explain why PPCs are concave (increasing opportunity cost).

 PPC Diagram — Quick Recap (I

Good A (Consumer goods) Good B (Capital goods) PPC Choice ?
  • Scarcity: Points outside the curve = unattainable.
  • Choice: Movement along the curve = different combinations of goods.
  • Opportunity Cost: Increase one good / must reduce the other.

Example Question & Marking Focus

Question: Explain, with the aid of a PPC diagram, why scarcity makes choice inevitable for firms and how each choice has an opportunity cost. [8 marks]

  • AO1 (2 marks): Define key terms + draw correct diagram (labelled axes & curve).
  • AO2 (6 marks): Apply to real economy (choices by government or firms) and explain scarcity, choice, opportunity cost on the PPC.

Do’s

  • Use real-world examples (e.g. defence vs healthcare spending).
  • Label axes clearly with actual goods.
  • State why PPC is concave — resources are not equally productive.
  • Link each point to the question (“This shows that …”).

 Don’ts

  • ? Don’t label axes as X & Y.
  • ? Don’t mix up scarcity with shortage.
  • ? Don’t omit the opportunity cost link in your answer.
  • ? Don’t forget to explain diagram movements — not just draw them.

Quick Summary Table

Concept Meaning Shown on PPC
Scarcity Limited resources vs unlimited wants Frontier curve – points beyond are unattainable
Choice Decision between alternatives Movement along curve
Opportunity Cost Next best alternative forgone Decrease in one good as another increases

 

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