Gce Model Questions Vol1 2018 Economics Question 1

Practice essay / theory question 1 from the 2018 Gce Model Questions Vol1 Economics examination. This question covers Scarcity, Opportunity Cost, Choice, Resource Allocation .

Gce Model Questions Vol1 2018 Economics Essay / Theory

Topics: Scarcity Opportunity Cost Choice Resource Allocation

Question 1 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • essay

An economy produces only two goods, rice and cloth, using a fixed amount of land, labour and capital. The total resources are scarce.

Question Parts

( a )

Define scarcity and explain why it is regarded as the fundamental economic problem.

( b )

Using the above scenario, illustrate the concept of opportunity cost when the economy decides to produce an additional 100 tonnes of rice.

( c )

Discuss how the concept of choice is reflected in the allocation of resources between rice and cloth, and evaluate two possible allocation strategies.

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About This Question

This is Gce Model Questions Vol1 2018 Economics Question 1. It is one of the essay questions from the 2018 Gce Model Questions Vol1 Economics examination.

The question covers Scarcity, Opportunity Cost, Choice, Resource Allocation .

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