Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

To bring down the price of oil, additional supplies are required. However, opponents reject exploring new sites because of the environmental harm this could cause. Explain why this is an example of 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.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI