Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

If the price of oil is to be lowered, extra supplies are required. However, in 2013, opponents resisted efforts to investigate new sites because exploration could lead to environmental damage. How does this demonstrate the basic economic problem?

  • AOil is a limited resource.
  • BOil is expensive.
  • CThe exploration involves demand and supply.
  • DThere are external costs involved in production.

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