Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

In 2014, the Hong Kong Housing Authority reported that the waiting period for public sector housing had become longer, and that it would complete only 8900 flats out of the 15 000 planned for the year. The causes were a shortage of workers because they were required for other public sector projects, the difficulty of securing land, and government regulations. Which economic concepts are shown by this information?

  • Aa market economy and a lack of resources
  • Beconomic planning and the price mechanism
  • Copportunity cost of labour and excess demand
  • Dproduction possibility and budget deficit

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