Economics 0455 · IGCSE · The nature of the economic problem
The nature of the economic problem — practice question
In Poland, people use both free goods and economic goods. In 2020, demand rose in Poland for economic goods as well as factors of production. For instance, Polish consumers wanted more football shirts, and the Polish government increased spending on housing for the country’s population.
(a)[2]
Identify two examples of free goods.
(b)[4]
Explain two influences affecting demand for factors of production.
(c)[6]
Analyse the effect of a rise in demand for football shirts on demand for football shorts and demand for basketball shirts.
(d)[8]
Discuss whether or not more government spending on housing would help an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “air / oxygen” …