Economics 2281 · O Level · The nature of the economic problem

The nature of the economic problem — practice question

To lower the price of oil, extra supplies are required. Yet in 2013, objectors resisted efforts to search for new sites because they were concerned about the environmental harm that such exploration might create. How does this demonstrate 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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