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1.1 Economic methodology and the economic problem

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Question 33

In economic analysis, scarcity is described as a relative concept rather than an absolute one. Which of the following statements best explains this distinction?

A

Scarcity only arises when a nation experiences an absolute physical shortage of basic agricultural commodities, such as during a famine.

B

Resources are limited relative to the infinite expansion of human wants, meaning even wealthy societies must make allocation choices.

C

Economic scarcity is a relative concept because it can be completely eliminated if governments redistribute income and wealth more equitably.

D

Scarcity only applies to non-renewable natural resources, whereas renewable factors of production are exempt from the basic economic problem.

Markscheme

1.1 Economic methodology and the economic problem Questions

  1. A Level
  2. /Economics
  3. /1.1 Economic methodology and the economic problem

123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.

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