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IGCSE Economics Resources
2027/2028/2029 -Paper -1-IGCSE Economics Topic Questions -Basic-Economic-Problem-Topic-Questions-Free Preview / 1.1 The nature of the basic economic problem Topic Questions
- 1.1.1-Finite-resources-and-infinite-wants-set-1-ms.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-1-qp.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-2-ms.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-2-qp.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-3-ms.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-3-qp.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-4-ms.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-4-qp.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-5-ms.pdf
- 1.1.1-Finite-resources-and-infinite-wants-set-5-qp.pdf
Note:
1.1 The nature of the basic economic problem Topic Questions / Paper 1/ MCQ/ IGCSE Economics
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IGCSE Economics Past Exam Questions / MCQ / Paper 1
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Q1. What is the basic economic problem facing all societies?
Reveal Answer
Correct Answer: D
Because resources are limited but human wants are unlimited, societies must decide what to produce, how to produce, and for whom to produce.
Because resources are limited but human wants are unlimited, societies must decide what to produce, how to produce, and for whom to produce.
Q2. Which terms summarise the nature of the economic problem?
Reveal Answer
Correct Answer: B
Resources such as land, labour and capital are limited, but human wants are unlimited. This mismatch creates scarcity.
Resources such as land, labour and capital are limited, but human wants are unlimited. This mismatch creates scarcity.
Q3. What is meant by the economic problem?
Reveal Answer
Correct Answer: C
The economic problem involves allocating scarce resources to satisfy as many wants as possible.
The economic problem involves allocating scarce resources to satisfy as many wants as possible.
Q4. Which combination causes the economic problem?
Reveal Answer
Correct Answer: B
Scarcity exists because resources are limited while wants are unlimited.
Scarcity exists because resources are limited while wants are unlimited.
Q5. A tractor factory runs out of important components and stops production. What does this illustrate?
Reveal Answer
Correct Answer: D
Production stops because necessary components are unavailable, showing that resources are scarce.
Production stops because necessary components are unavailable, showing that resources are scarce.
Q6. Why will the economic problem never be solved?
Reveal Answer
Correct Answer: A
Human wants are unlimited while resources remain limited, so scarcity will always exist.
Human wants are unlimited while resources remain limited, so scarcity will always exist.
Q7. What is the cause of economic scarcity?
Reveal Answer
Correct Answer: C
People want more goods and services than the available resources can produce.
People want more goods and services than the available resources can produce.
Q8. What is the basic economic problem?
Reveal Answer
Correct Answer: B
The standard definition of the economic problem is finite resources and unlimited wants.
The standard definition of the economic problem is finite resources and unlimited wants.
Q9. Which combination gives the definition of the economic problem?
Reveal Answer
Correct Answer: D
Scarcity occurs because limited resources must satisfy unlimited wants.
Scarcity occurs because limited resources must satisfy unlimited wants.
Q10. What is the cause of scarcity in an economy?
Reveal Answer
Correct Answer: D
Scarcity exists because human wants exceed the resources available to satisfy them.
Scarcity exists because human wants exceed the resources available to satisfy them.
Q11. What is part of the economic definition of scarcity?
Reveal Answer
Correct Answer: D
Scarcity includes the idea that consumer wants are unlimited, meaning demand always exceeds available resources.
Scarcity includes the idea that consumer wants are unlimited, meaning demand always exceeds available resources.
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