Structured questions 1 In 2017, a series of powerful hurricanes destroyed many homes and factories in the British Virgin Islands. Rebuilding will take time and involve an opportunity cost as resources will need to be diverted from other uses Asa result, many people may decide to emigrate. ‘A. Define opportunity cost. I B__ Explain why itis impossible to solve the economic problem. [4] Using a production possibility curve diagram, analyse the effect ofa reduction in the resources available to an economy. [6] D__ Discuss whether a country will benefit from emigration. [8] 2. In 2012, the US Government approved spending of US$1.5 billion to send a third robotic exploration vehicle to Mars in 2020. Some economists argued that it would be better to use the same scarce resources including labour and enterprise, to improve education or to build more roads instead, A_ Define enterprise. (2) B Explain why scarcity of resources creates an opportunity cost. i © Using a production possibility curve diagram, analyse the impact an increase in education could haye on an economy. (61 D__ Discuss whether the construction and use of more roads will benefit an economy. [8]