Which of the following explains why choice is a fundamental part of the basic economic problem?
High corporate taxes reduce consumer spending.
Scarce resources have alternative uses.
Unequal income distribution restricts baseline demand.
Production possibilities frontiers are always linear.
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.