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

The nature of the economic problem — practice question

Helium is a gas in short supply because it takes thousands of years to form. The US government owns $35\%$ of the world’s helium supply and has been selling its stocks. Helium is needed in medical scanners. It is also used for party balloons, which is an inefficient alternative use of a valuable good. Which two concepts apply to this statement?

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