Economics 0455 · IGCSE · The nature of the economic problem
The nature of the economic problem — practice question
Countries must decide how to allocate their scarce resources. In some countries, a larger share of these resources is being directed towards tourism. However, many jobs in this sector are low-paid and provide little security. For instance, the average age of people working in hotels is quite young, even though some older employees have spent their whole working lives in the hotel industry.
(a)[2]
What do the words ‘scarce resources’ mean?
(b)[4]
Explain two reasons why somebody might be prepared to take a low-paid job with little job security.
(c)[6]
Analyse how the spending, saving and borrowing patterns of young workers may differ from those of older workers.
(d)[8]
Discuss whether developing countries ought to promote foreign tourism.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The economic factors of production” …