Economics 0455 · IGCSE · The nature of the economic problem

The nature of the economic problem — practice question

To bring down the price of oil, extra supplies are required. However, those who object are against searching for new locations because of the environmental harm this could create. Why is this 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.

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