Gce Model Questions Vol1 2023 Economics Question 1

Practice essay / theory question 1 from the 2023 Gce Model Questions Vol1 Economics examination. This question covers Scarcity, Opportunity Cost, Allocation Mechanisms .

Gce Model Questions Vol1 2023 Economics Essay / Theory

Topics: Scarcity Opportunity Cost Allocation Mechanisms

Question 1 GCE_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • essay

A small open economy produces only two goods: rice and clothing. The economy has limited resources and must decide how much of each good to produce.

Question Parts

( a )

Define scarcity and explain why it forces individuals and societies to make choices.

( b )

Using a production‑possibility frontier (PPF), illustrate and explain the concept of opportunity cost when the economy moves from producing 100 units of rice to 80 units of rice while increasing clothing output.

( c )

Discuss two ways in which a government can allocate scarce resources to address the problem of scarcity, giving one advantage and one limitation for each method.

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About This Question

This is Gce Model Questions Vol1 2023 Economics Question 1. It is one of the essay questions from the 2023 Gce Model Questions Vol1 Economics examination.

The question covers Scarcity, Opportunity Cost, Allocation Mechanisms .

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