Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

Water is a scarce resource in Singapore because the island’s limited geographical area leaves very little land from which to gather water for its $4.8$ million people. Which method would be least successful in dealing with its water scarcity?

  • Aexempting large families from paying water taxes
  • Bimporting water from neighbouring countries
  • Cintroducing a water tax that rises as consumption rises
  • Dredirecting funds from education to schemes to purify rainwater

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