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

The nature of the economic problem — practice question

Helium is a gas whose supply is restricted because its formation takes thousands of years. The US government owns $35\%$ of the global supply of helium and has been selling its reserves. Helium is vital in medical scanners. It is also used in 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

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