This question was popular with the candidates. The question required candidates to apply the concept of scale of preference and opportunity cost to real life situation. Most candidates fell short of this expectation. This made them to score average marks.

The candidates were expected to provide the following answers to score high marks.

(a) (i) Textbook and shirt
(ii) Because the textbook and the shirt are the items at the top of his scale of preference which can be purchased with his $7.00
(b) (i) The shoes, the trousers and the notebook
(ii) Because those three items are the next best alternative, which can be purchased with $7.00
(c) (i) Textbook, shirt and shoes
(ii) Trousers, the notebook and $6.00 out of his school fees.
(d) A scale of preference is a list of wants arranged in an order of importance.
Opportunity cost is the alternative want foregone as a particular item is chosen, or as a particular want is satisfied.
(e) A scale of preference helps an individual, a firm or a government to make rational use of available resources to satisfy the most important want.