Economics 2281 · O Level · The nature of the economic problem
The nature of the economic problem — practice question
Each country must decide how to allocate its scarce resources. Several countries are assigning a greater share of their resources to tourism. However, some jobs in the industry are low-paid and provide little employment security. The average age of workers employed, for instance, in hotels is fairly young, even though some older workers have spent their working life in the hotel industry.
(a)[2]
What do the words ‘scarce resources’ mean?
(b)[4]
Explain two reasons why a person might agree to do a job that pays little and offers little job security.
(c)[6]
Analyse how the spending, saving and borrowing habits of young workers may differ from those of older workers.
(d)[8]
Discuss whether developing countries ought to encourage foreign tourism.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The factors of production” …