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Opportunity cost and the basic economic problemDefinitionOpportunity cost: the cost of any activity measured in terms of the value of the next bestalternative forgone (that is not chosen) Production. : the act of creating output, a good or service which has value contributes tothe utility of others.Paper 2 - Structured questions Cambridge IGCSE Economics 0455 11 Examiner comment - grade A (a) The answer might have provided more evidence but it does note that most of Angola's output is oil. (1/2) (b) A brief but pertinent answer which recognises the signifi cance of there being only one taxi fi rm in Luanda. (2/2) (c) An accurate and well-labelled diagram is produced here.in 0580 IGCSE Mathematics Past Year Papers presenting arguments and chains of reasoning in a logical and structured way. interpreting and communicating information accurately and changing from one form of presentation to. another. assessing the validity of an argument and critically evaluating a given way of presenting information.About Economics (2281): The Cambridge O Level Economics syllabus develops an understanding of economic terminology and principles, and of basic economic theory. Learners find out about the economics of developed and developing nations and how these interrelate. 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