Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

Helium is a scarce gas because it needs thousands of years to form. The US government owns 35% of the world’s supply of helium and has been selling its reserves. Helium is needed for medical scanners. It is also put into party balloons, which is a wasteful alternative use of a valuable resource. Which two concepts fit this statement?

  • Ademand and supply, government subsidy
  • Bexcess demand, resource allocation
  • Copportunity cost, private monopoly
  • Dpublic sector, factors of production

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