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Exam-style practice

The nature of the economic problem answer explanations

Review worked answers and explanations for The nature of the economic problem. Aligned to Cambridge IGCSE Economics.

Answer explanations

Question 1 of 4

Review the answer support, then move sideways through the set.

Paper 2 structured question: The nature of the economic problem

Paper 2Structured Questions1 marks

Description

Scarcity in the Economy

Due to the depletion of natural resources, the government must decide how to allocate the remaining resources among various sectors.

  1. a

    State one reason why limited resources create scarcity in the economy.

    [1]