The Clarion-Clipperton Zone in the Pacific Ocean contains vast fields of polymetallic nodules rich in cobalt and nickel, which are highly demanded for electric vehicle batteries. However, deep-sea mining operations threaten to destroy unique benthic ecosystems and cause the extinction of rare marine species that live on the ocean floor.
From the passage above, it can be inferred that:
deep-sea minerals are free goods because they lie in international waters and have no ownership rights.
the benthic ecosystem is not an economic resource because it lacks a market price.
the preservation of deep-sea biodiversity is an opportunity cost of extracting the polymetallic nodules.
the private cost of deep-sea mining is greater than its social cost due to the damage to marine habitats.
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.