Economics 0455 · IGCSE · The nature of the economic problem
The nature of the economic problem — practice question
Once a fishing village, Shenzhen is now among China’s wealthiest cities and has a large secondary sector. This change was made possible because nearby villages pooled resources to improve their area. For instance, they built new housing to rent to migrants who work in the city’s factories. Even so, housing supply has not kept pace with demand, so the government is now imposing a maximum price on housing.
(a)[2]
Define secondary sector, supported by an example that is not construction.
(b)[4]
Explain any two important resource-allocation decisions.
(c)[6]
Analyse the reasons workers may choose to migrate to another area.
(d)[8]
Discuss whether a government should introduce a maximum price on housing.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sector that transforms raw materials into manufactured goods” …