Edexcel A Level Economics B
Edexcel A Level Economics B 1.1 Scarcity, Choice and Potential Conflicts Exam Questions
Free Edexcel A Level Economics B exam questions on 1.1 Scarcity, Choice and Potential Conflicts, with mark schemes. Covers the economic problem, opportunity cost, PPFs and stakeholder conflicts.
1.1 Scarcity, Choice and Potential Conflicts exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
StemUp mark scheme flashcards
A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 1.1 Scarcity, Choice and Potential Conflicts
1.1 opens Economics B by framing every decision as a choice under scarcity, and introduces the stakeholders whose interests can clash. Questions are often set in a business context from the extract.
What you need to know
- The economic problem Unlimited wants and finite resources mean every choice has an opportunity cost, the next best alternative forgone.
- Production possibility frontiers Show maximum output combinations, efficiency, opportunity cost and economic growth.
- Specialisation and the division of labour Raise productivity but can cause monotony, dependency and structural unemployment.
- Stakeholders and conflicts Shareholders, managers, workers, customers, suppliers, government and the community can have competing aims, for example profit versus wages or growth versus the environment.
Common mistakes in 1.1 Scarcity, Choice and Potential Conflicts
- Defining opportunity cost as the money cost of something.
- Listing stakeholders without explaining why their objectives conflict.
- Forgetting to label both axes of a PPF.
Try three 1.1 Scarcity, Choice and Potential Conflicts exam-style questions
1. Define opportunity cost. (1 mark)
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The value of the next best alternative forgone when a choice is made.
2. Explain one potential conflict between shareholders and employees. (3 marks)
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Shareholders want higher profits and dividends (1), while employees want higher wages and job security (1). Raising wages increases costs and reduces profit, so their objectives conflict (1).
3. Explain what a point inside a PPF shows. (2 marks)
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The economy is not using all its resources or is using them inefficiently (1), so output could rise without giving up any other good (1).
1.1 Scarcity, Choice and Potential Conflicts FAQs
What does Edexcel A Level Economics B 1.1 cover?
Scarcity and the economic problem, opportunity cost, PPFs, specialisation and the conflicts between stakeholders.
Which paper tests Theme 1?
Theme 1 is examined in Paper 1, Markets and how they work, together with Theme 3, and in Paper 3.
How is Economics B different from Economics A?
Economics B is more applied, using business contexts and real case studies, but the core economic theory overlaps.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
