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It refers to resources provided by nature rather than manufactured resources."},{"text":"Labour.","correct":false,"explanation":"Labour means human effort, skills and time, not natural resources. Fields, oil, water, forests and minerals are all examples of the factor of production called land."},{"text":"Capital.","correct":false,"explanation":"Capital consists of manufactured resources used to produce goods and services, such as machinery, buildings and tools. Natural resources like oil and forests are classified as land."},{"text":"Enterprise.","correct":false,"explanation":"Enterprise is the factor that organises the other resources and takes business risks. Natural resources, including minerals and water, belong to the land factor instead."}]},{"id":"bbcf680a-77d3-4feb-be8f-545948b4601c","cardType":"basic","points":1,"front":"Human effort, skills and time are examples of which factor of production?","back":"Labour.","mcqOptions":[{"text":"Labour.","correct":true,"explanation":"Labour is the human input into production, including workers’ effort, skills and time. Both physical and mental work are included in this factor of production."},{"text":"Land.","correct":false,"explanation":"Land covers natural resources supplied by nature, such as fields, forests and minerals. Human effort, skills and time are classified as labour, not land."},{"text":"Capital.","correct":false,"explanation":"Capital means man-made resources used in production, including machinery, buildings, tools and technology. Human effort and skills are examples of labour instead."},{"text":"Enterprise.","correct":false,"explanation":"Enterprise involves organising resources and taking risks when running a business. The human effort, skills and time used in production are the labour factor."}]},{"id":"f061e488-03a3-430a-88ac-f6034aececd0","cardType":"basic","points":1,"front":"Machinery, buildings, tools and technology are examples of which factor of production?","back":"Capital.","mcqOptions":[{"text":"Capital.","correct":true,"explanation":"Capital consists of manufactured resources used to produce goods and services. Machinery, buildings, tools and technology are all examples of physical or productive capital."},{"text":"Land.","correct":false,"explanation":"Land refers to natural resources such as oil, water, forests and minerals. Machinery, buildings, tools and technology are made by people, so they are capital."},{"text":"Labour.","correct":false,"explanation":"Labour is the human contribution to production, including effort, skills and time. Equipment and technology are produced resources, which belong to the capital factor."},{"text":"Enterprise.","correct":false,"explanation":"Enterprise is the ability to organise production and accept risks. Machinery, buildings, tools and technology are resources used in production and are classified as capital."}]},{"id":"09be6a6e-e4c5-4db8-87fb-99cdfe2676ec","cardType":"basic","points":1,"front":"Which factor of production organises resources and takes risks?","back":"Enterprise.","mcqOptions":[{"text":"Enterprise.","correct":true,"explanation":"Enterprise is the factor of production that brings land, labour and capital together, organises production and accepts the risks involved in running a business."},{"text":"Land.","correct":false,"explanation":"Land consists of natural resources used in production. It does not organise the other factors or take business risks; those functions are performed by enterprise."},{"text":"Labour.","correct":false,"explanation":"Labour is the human effort, skills and time used in production. Organising resources and taking risks are the defining roles of enterprise."},{"text":"Capital.","correct":false,"explanation":"Capital includes manufactured resources such as machinery, buildings and tools. These resources support production but do not make decisions or accept business risks."}]},{"id":"bcf61a03-9e73-46de-8a76-0c153d6adcb6","cardType":"basic","points":1,"front":"A phone or loaf of bread is a good because it is what type of product?","back":"A physical product.","mcqOptions":[{"text":"A physical product.","correct":true,"explanation":"A phone or loaf of bread is tangible and can be physically handled, so it is a physical product rather than a service."},{"text":"A personal service.","correct":false,"explanation":"A personal service involves an activity carried out for someone, such as a haircut. A phone or loaf of bread is tangible, so it is a physical product."},{"text":"A digital service.","correct":false,"explanation":"A digital service provides an activity or access through technology rather than a tangible object. Phones and loaves of bread are physical products because they can be handled."},{"text":"A financial service.","correct":false,"explanation":"A financial service involves managing money, credit or investments. A phone or loaf of bread is a tangible item, making it a physical product."}]},{"id":"378ed651-de48-402b-af1d-11cfa0046e80","cardType":"basic","points":1,"front":"A haircut or train journey is a service because it is what type of output?","back":"An activity done for someone else.","mcqOptions":[{"text":"An activity done for someone else.","correct":true,"explanation":"A service is an activity or task provided for another person rather than a tangible object. Haircuts and train journeys are consumed through the activity they provide."},{"text":"An object made for someone else.","correct":false,"explanation":"An object made for someone else is a physical product, such as a phone or loaf of bread. A haircut or train journey is an activity provided to a customer."},{"text":"A natural resource used by someone else.","correct":false,"explanation":"Natural resources such as water, forests and minerals are examples of land. A haircut or train journey is a service because it is an activity provided for another person."},{"text":"A machine operated by someone else.","correct":false,"explanation":"Machines and equipment are examples of capital, even when another person operates them. A haircut or train journey is an activity done for a customer."}]},{"id":"fbbe693b-3e1e-4ea8-b01f-e7246569ac86","cardType":"basic","points":2,"front":"Why can a resource be scarce even if there is a lot of it?","back":"It is limited compared with people’s wants for it.","mcqOptions":[{"text":"It is limited compared with people’s wants for it.","correct":true,"explanation":"Scarcity depends on the relationship between available supply and people’s wants. Even a plentiful resource is scarce if people want more of it than is available."},{"text":"It is unavailable to everyone who wants it.","correct":false,"explanation":"A resource does not need to be completely unavailable to be scarce. Scarcity exists when supply is limited compared with people’s wants, even if some is available."},{"text":"It is expensive compared with other resources people use.","correct":false,"explanation":"Price is not what defines scarcity, because a resource can be scarce without being the most expensive. Scarcity means supply is limited compared with people’s wants."},{"text":"It is used up completely before people want more of it.","correct":false,"explanation":"A resource can be scarce while some remains available. The key comparison is between its limited supply and people’s wants, not whether it has been completely used up."}]},{"id":"d805f8a2-29d5-4961-b51a-40d06318b510","cardType":"cloze","points":null,"front":"Resources are [ ] when supply is limited compared with the [ ] people have for them.","back":"Resources are scarce when supply is limited compared with the uses people have for them.","mcqOptions":[{"text":"Resources are scarce when supply is limited compared with the uses people have for them.","correct":true,"explanation":"Resources are scarce when the supply available is limited compared with the uses people have for them. This creates the basic economic problem of making choices."},{"text":"Resources are abundant when supply is limited compared with the uses people have for them.","correct":false,"explanation":"Abundant means there is plentiful supply relative to uses. The correct term is scarce because limited supply cannot fully meet the uses people have for resources."},{"text":"Resources are scarce when supply is unlimited compared with the uses people have for them.","correct":false,"explanation":"Unlimited supply would not create scarcity. The correct sentence says resources are scarce when supply is limited compared with the uses people have for them."},{"text":"Resources are renewable when supply is limited compared with the uses people have for them.","correct":false,"explanation":"Renewable describes whether a resource can be replenished, not whether its supply is limited relative to its uses. The correct term here is scarce."}]},{"id":"29f176a3-af3b-44ba-ae20-611247f98877","cardType":"basic","points":2,"front":"Why do scarce resources and unlimited wants force economic choice?","back":"Resources cannot satisfy every possible want.","mcqOptions":[{"text":"Resources cannot satisfy every possible want.","correct":true,"explanation":"Scarcity means available resources are insufficient to meet all human wants. Choices are therefore necessary about which wants to satisfy and which to leave unmet."},{"text":"Resources cannot satisfy any possible want.","correct":false,"explanation":"Scarcity does not mean that resources meet no wants at all. Resources satisfy some wants, but they cannot satisfy every possible want, which creates the need for choice."},{"text":"Resources can satisfy every possible want.","correct":false,"explanation":"If resources could satisfy every want, scarcity would not exist and economic choices would be unnecessary. In reality, resources cannot satisfy every possible want."},{"text":"Resources expand to match every possible want.","correct":false,"explanation":"Resources do not automatically increase at the same rate as people’s wants. Because resources cannot satisfy every possible want, individuals and societies must make choices."}]},{"id":"df25b862-9a39-4930-bdf3-30fb8257a533","cardType":"cloze","points":null,"front":"[ ] means people’s desire for goods and services has [ ].","back":"Unlimited wants means people’s desire for goods and services has no clear limit.","mcqOptions":[{"text":"Unlimited wants means people’s desire for goods and services has no clear limit.","correct":true,"explanation":"Unlimited wants describes the absence of a definite endpoint to people’s desires. Even when some wants are satisfied, people continue to desire other goods and services."},{"text":"Scarcity means people’s desire for goods and services has no clear limit.","correct":false,"explanation":"Scarcity describes resources being limited relative to wants, not the nature of people’s desires. Unlimited wants means that desire for goods and services has no clear limit."},{"text":"Unlimited wants means people’s desire for goods and services has a fixed upper limit.","correct":false,"explanation":"A fixed upper limit would make wants limited rather than unlimited. Unlimited wants means people’s desire for goods and services has no clear limit."},{"text":"Limited wants means people’s desire for goods and services has no fixed ceiling.","correct":false,"explanation":"Limited wants and the absence of a fixed ceiling contradict each other. The economic problem assumes unlimited wants, meaning people’s desire has no clear limit."}]},{"id":"b78f97e4-6d68-441f-affe-1edab21f0a60","cardType":"basic","points":1,"front":"What does allocating resources mean?","back":"Deciding where resources go and how they are used.","mcqOptions":[{"text":"Deciding where resources go and how they are used.","correct":true,"explanation":"Allocation involves assigning scarce resources among competing uses. It therefore requires decisions about where resources go and how they will be used."},{"text":"Deciding where resources are discovered and extracted.","correct":false,"explanation":"Discovering and extracting resources are production activities, not the full meaning of allocation. Allocation means deciding where resources go and how they are used."},{"text":"Deciding how much consumers want each product.","correct":false,"explanation":"Measuring consumer demand helps inform economic decisions, but it is not resource allocation itself. Allocation is deciding where resources go and how they are used."},{"text":"Deciding what prices firms charge for products.","correct":false,"explanation":"Setting prices concerns firms’ pricing decisions and market exchange. Allocating resources instead means deciding where scarce resources go and how they are used."}]},{"id":"d73dac65-7b00-4db1-95f3-2e1fbba43484","cardType":"basic","points":1,"front":"Which economic question asks which goods and services should be made?","back":"What should be produced?","mcqOptions":[{"text":"What should be produced?","correct":true,"explanation":"The “what” question concerns the selection and quantity of goods and services an economy will make using its limited resources."},{"text":"How should be produced?","correct":false,"explanation":"The “how” question concerns production methods and combinations of resources. The question that identifies which goods and services should be made is “What should be produced?”"},{"text":"For whom should be produced?","correct":false,"explanation":"The “for whom” question concerns how output is distributed among people. Choosing which goods and services to make answers “What should be produced?”"},{"text":"When should be produced?","correct":false,"explanation":"Timing may matter to producers, but it is not one of the three fundamental economic questions. The choice of goods and services is the “what” question."}]},{"id":"dd2bad16-1898-47bc-9041-d17f01abe591","cardType":"basic","points":1,"front":"Which economic question asks about the method of production?","back":"How should goods and services be produced?","mcqOptions":[{"text":"How should goods and services be produced?","correct":true,"explanation":"The “how” question concerns the production techniques and combinations of labour, capital and other resources used to create goods and services."},{"text":"What should goods and services be produced?","correct":false,"explanation":"The “what” question determines which goods and services are made, not the method used. Production methods are addressed by “How should goods and services be produced?”"},{"text":"For whom should goods and services be produced?","correct":false,"explanation":"The “for whom” question concerns who receives the resulting output. The question about the method of production is “How should goods and services be produced?”"},{"text":"When should goods and services be produced?","correct":false,"explanation":"The timing of production is not the fundamental question about production methods. Methods and resource combinations are covered by “How should goods and services be produced?”"}]},{"id":"3155fcd3-9022-4ce6-b384-f158ba2eeaf0","cardType":"basic","points":1,"front":"Which economic question asks who receives goods and services?","back":"For whom should goods and services be produced?","mcqOptions":[{"text":"For whom should goods and services be produced?","correct":true,"explanation":"The “for whom” question concerns the distribution of goods and services, including which individuals or groups receive the output produced by the economy."},{"text":"What should goods and services be produced?","correct":false,"explanation":"The “what” question selects the goods and services to make, rather than their recipients. Distribution is addressed by “For whom should goods and services be produced?”"},{"text":"How should goods and services be produced?","correct":false,"explanation":"The “how” question concerns the production methods and resources used. The question about who receives the resulting output is the “for whom” question."},{"text":"Where should goods and services be produced?","correct":false,"explanation":"The place of production is not one of the three fundamental allocation questions. Who receives the output is addressed by “For whom should goods and services be produced?”"}]},{"id":"a46ba8bc-1475-4532-9e11-772a5972a32c","cardType":"cloze","points":null,"front":"The [ ] is deciding how to allocate scarce resources to satisfy [ ].","back":"The economic problem is deciding how to allocate scarce resources to satisfy unlimited wants.","mcqOptions":[{"text":"The economic problem is deciding how to allocate scarce resources to satisfy unlimited wants.","correct":true,"explanation":"The economic problem arises because scarce resources must be allocated between competing uses while people’s wants remain unlimited, making choices unavoidable."},{"text":"The production problem is deciding how to allocate scarce resources to satisfy unlimited wants.","correct":false,"explanation":"Production is only one use of resources, so this is broader than a production problem. It is the economic problem of allocating resources to satisfy unlimited wants."},{"text":"The economic problem is deciding how to allocate scarce resources to satisfy limited wants.","correct":false,"explanation":"The central difficulty arises because wants are unlimited, not limited. The economic problem is deciding how scarce resources should be allocated to satisfy unlimited wants."},{"text":"The production problem is deciding how to allocate scarce resources to satisfy limited wants.","correct":false,"explanation":"Neither replacement identifies the central issue: production is only one activity, and limited wants would reduce scarcity. The economic problem involves allocating resources to satisfy unlimited wants."}]},{"id":"51dea5b3-bc11-415c-aed3-4fa2b06a7654","cardType":"basic","points":1,"front":"If several alternatives are given up, which one is the opportunity cost?","back":"The next best alternative forgone.","mcqOptions":[{"text":"The next best alternative forgone.","correct":true,"explanation":"Opportunity cost is the value of the most desirable option not chosen. When several alternatives are sacrificed, only the next best alternative counts."},{"text":"The combined value of all alternatives forgone.","correct":false,"explanation":"Opportunity cost is not the sum of every rejected possibility. It is the next best alternative forgone because that is the option that would otherwise have been chosen."},{"text":"The least valuable alternative forgone.","correct":false,"explanation":"The least valuable rejected option is not the relevant sacrifice. Opportunity cost is the next best alternative forgone, representing the best available option not selected."},{"text":"The most expensive alternative forgone.","correct":false,"explanation":"Choosing the most expensive option confuses monetary price with value to the decision-maker. Opportunity cost is the next best alternative forgone, regardless of its price."}]},{"id":"68dd216d-b36f-4ce8-a148-7e2f1a134758","cardType":"cloze","points":null,"front":"Opportunity cost is the value of the [ ] given up when a [ ] is made.","back":"Opportunity cost is the value of the next best alternative given up when a choice is made.","mcqOptions":[{"text":"Opportunity cost is the value of the next best alternative given up when a choice is made.","correct":true,"explanation":"Opportunity cost is defined as the value of the next best alternative sacrificed when a choice is made. It measures the single most valuable opportunity that is given up."},{"text":"Opportunity cost is the value of the chosen option given up when a decision is made.","correct":false,"explanation":"This confuses the opportunity cost with the original option selected. The correct definition refers to the next best alternative that is given up when a choice is made."},{"text":"Opportunity cost is the value of the cheapest alternative given up when a purchase is made.","correct":false,"explanation":"Opportunity cost does not include every possible option or simply the cheapest option. It is specifically the next best alternative forgone when a choice is made."},{"text":"Opportunity cost is the value of the total alternatives given up when a resource is made.","correct":false,"explanation":"The opportunity cost is not the total value of all alternatives considered. It is the value of the next best alternative sacrificed when a choice is made."}]},{"id":"9dda68d3-938e-4291-9a59-0e22c3ca4e6d","cardType":"basic","points":2,"front":"Why is opportunity cost not every alternative added together?","back":"Only the best alternative forgone counts.","mcqOptions":[{"text":"Only the best alternative forgone counts.","correct":true,"explanation":"Opportunity cost considers only the single most valuable alternative that was not chosen. Adding every possible alternative would overstate the cost of the decision."},{"text":"All the alternatives forgone count.","correct":false,"explanation":"Counting every alternative treats opportunity cost as a total of all rejected options. The correct measure is only the best alternative forgone, because that is the next most valuable use."},{"text":"Only the chosen option counts.","correct":false,"explanation":"The chosen option is the benefit received, not an opportunity cost. Opportunity cost is the best alternative that could have been selected instead."},{"text":"Only the worst alternative forgone counts.","correct":false,"explanation":"The least attractive alternative has little relevance to the sacrifice made. The correct answer is the best alternative forgone, which represents the greatest rejected benefit."}]},{"id":"7eb33ea1-39c0-4119-92b5-5bc690f5773a","cardType":"basic","points":1,"front":"What is an economic choice about?","back":"How scarce resources are used.","mcqOptions":[{"text":"How scarce resources are used.","correct":true,"explanation":"Economic choice concerns deciding how to allocate scarce resources between competing uses. Scarcity means resources are limited while wants are unlimited."},{"text":"How unlimited wants are satisfied.","correct":false,"explanation":"Economic choices are not mainly about satisfying unlimited wants, because wants exceed available resources. The focus is on allocating scarce resources between competing uses."},{"text":"How market prices are set.","correct":false,"explanation":"Prices can influence decisions but are not the central definition of economic choice. The key issue is how scarce resources are allocated between alternatives."},{"text":"How business profits are increased.","correct":false,"explanation":"Profit is one possible consideration for a business, but economic choice applies more widely. It concerns how scarce resources are used, not just how profits are increased."}]},{"id":"a4092ecb-a63c-4347-8829-a643bc9cfbdc","cardType":"basic","points":2,"front":"How do costs and benefits differ in an economic choice?","back":"

Cost - negative or sacrificed.
Benefit - positive gained.

","mcqOptions":[{"text":"

Cost - negative or sacrificed.
Benefit - positive gained.

","correct":true,"explanation":"A cost is a negative consequence or sacrifice, while a benefit is a positive gain from a choice. Comparing both helps people evaluate economic decisions."},{"text":"

Cost - positive gained.
Benefit - negative or sacrificed.

","correct":false,"explanation":"This reverses the meanings of the two terms. A cost is the negative consequence or sacrifice, whereas a benefit is the positive gain from a choice."},{"text":"

Cost - money paid.
Benefit - resource used.

","correct":false,"explanation":"A cost is not necessarily a financial payment, and a benefit is not necessarily a resource used. The correct distinction is sacrifice versus positive gain."},{"text":"

Cost - positive sacrificed.
Benefit - positive gained.

","correct":false,"explanation":"This describes both outcomes as positive, so it fails to identify the sacrifice involved in a cost. Benefits are positive gains, but costs are negative or sacrificed."}]},{"id":"3787dc7e-f3bc-4439-bce7-490220f7583a","cardType":"cloze","points":null,"front":"Sustainability means choices can continue over time without serious damage to future [ ], [ ] or the environment.","back":"Sustainability means choices can continue over time without serious damage to future living standards, society or the environment.","mcqOptions":[{"text":"Sustainability means choices can continue over time without serious damage to future living standards, society or the environment.","correct":true,"explanation":"Sustainability requires decisions to avoid harming future living standards and society, as well as the environment. This allows choices and their benefits to continue over time."},{"text":"Sustainability means choices can continue over time without serious damage to future economic growth, society or the environment.","correct":false,"explanation":"Economic growth can be an aim of policy, but it is not the stated social outcome protected by sustainability. The correct term is future living standards."},{"text":"Sustainability means choices can continue over time without serious damage to future natural resources, society or the environment.","correct":false,"explanation":"The term natural resources relates mainly to environmental sustainability, not the human welfare outcome in this definition. The correct phrase is future living standards."},{"text":"Sustainability means choices can continue over time without serious damage to future living standards, individuals or the environment.","correct":false,"explanation":"Individuals are part of society, but the broader concept is the social system and its wellbeing. The definition refers to future living standards and society."}]},{"id":"5dd43cc7-1366-40c0-9a9c-ab5fc3cdb810","cardType":"basic","points":1,"front":"A choice supporting long-term jobs, incomes and production is which type of sustainability?","back":"Economic sustainability.","mcqOptions":[{"text":"Economic sustainability.","correct":true,"explanation":"Economic sustainability focuses on maintaining jobs, incomes and production over the long term, so economic activity can continue without undermining future prosperity."},{"text":"Social sustainability.","correct":false,"explanation":"Social sustainability concerns fairness, health and quality of life. Jobs, incomes and production are economic outcomes, so this describes economic sustainability."},{"text":"Environmental sustainability.","correct":false,"explanation":"Environmental sustainability protects resources, habitats and ecosystems. Long-term jobs, incomes and production instead identify the economic dimension of sustainability."},{"text":"Short-term sustainability.","correct":false,"explanation":"Short-term sustainability is not one of the three standard categories used here. Supporting jobs, incomes and production over time is classified as economic sustainability."}]},{"id":"7cf231b7-6a27-4481-835b-c439cba6d1d2","cardType":"basic","points":1,"front":"A choice supporting fairness, health and quality of life is which type of sustainability?","back":"Social sustainability.","mcqOptions":[{"text":"Social sustainability.","correct":true,"explanation":"Social sustainability aims to preserve and improve people’s wellbeing through fairness, good health and quality of life. These are social rather than purely economic or environmental outcomes."},{"text":"Economic sustainability.","correct":false,"explanation":"Economic sustainability concerns jobs, incomes and production. Fairness, health and quality of life are indicators of social sustainability instead."},{"text":"Environmental sustainability.","correct":false,"explanation":"Environmental sustainability focuses on natural resources and ecosystems. Human fairness, health and quality of life belong to the social category."},{"text":"Intergenerational sustainability.","correct":false,"explanation":"Intergenerational sustainability describes considering future generations, but it is not the category named in this classification. Fairness, health and quality of life indicate social sustainability."}]},{"id":"a632ad45-5a44-46e0-8296-818163e947f3","cardType":"basic","points":1,"front":"A choice protecting natural resources and ecosystems is which type of sustainability?","back":"Environmental sustainability.","mcqOptions":[{"text":"Environmental sustainability.","correct":true,"explanation":"Environmental sustainability means protecting natural resources and ecosystems so they remain available and healthy for the future rather than being permanently damaged."},{"text":"Economic sustainability.","correct":false,"explanation":"Economic sustainability concerns maintaining jobs, incomes and production. Protecting natural resources and ecosystems is specifically environmental sustainability."},{"text":"Social sustainability.","correct":false,"explanation":"Social sustainability concerns fairness, health and quality of life. Natural resources and ecosystems are environmental concerns, so this classification is different."},{"text":"Resource sustainability.","correct":false,"explanation":"Resource sustainability is not the standard category used in this framework. Protecting resources and ecosystems is included under environmental sustainability."}]},{"id":"ea713f41-e2a0-4a2d-89bc-8a0a5eed5771","cardType":"basic","points":2,"front":"Why might using more fossil fuels be weak in the long run?","back":"It can increase pollution and carbon emissions.","mcqOptions":[{"text":"It can increase pollution and carbon emissions.","correct":true,"explanation":"Burning more fossil fuels releases additional pollutants and greenhouse gases, including carbon dioxide. This worsens air quality and contributes to climate change, making the choice less sustainable in the long run."},{"text":"It can reduce pollution and carbon emissions.","correct":false,"explanation":"Using more fossil fuels generally increases, rather than reduces, pollution and carbon emissions because combustion releases pollutants and greenhouse gases. The correct answer is that it can increase pollution and carbon emissions."},{"text":"It can increase renewable energy production.","correct":false,"explanation":"Fossil fuels are non-renewable energy sources, so using more of them does not directly increase renewable energy production. The correct concern is that fossil-fuel use can increase pollution and carbon emissions."},{"text":"It can reduce energy costs permanently.","correct":false,"explanation":"Greater fossil-fuel use cannot guarantee permanently lower costs because supplies are finite and prices can fluctuate. The long-run weakness identified is increased pollution and carbon emissions."}]},{"id":"ab32f4e7-379e-40d2-b895-f2be4f714edd","cardType":"cloze","points":null,"front":"To evaluate an economic choice, weigh up costs and benefits, then reach a [ ].","back":"To evaluate an economic choice, weigh up costs and benefits, then reach a reasoned judgement.","mcqOptions":[{"text":"reasoned judgement","correct":true,"explanation":"A reasoned judgement is reached after weighing the relevant costs and benefits. It provides a supported conclusion about which option is preferable rather than simply listing advantages and disadvantages."},{"text":"final calculation","correct":false,"explanation":"Economic choices are not evaluated only by calculating a numerical result; they require weighing costs and benefits and supporting a conclusion. The correct term is reasoned judgement."},{"text":"personal preference","correct":false,"explanation":"A personal preference is an unsupported opinion, whereas evaluation requires considering evidence about costs and benefits. The appropriate conclusion is a reasoned judgement based on that comparison."},{"text":"balanced description","correct":false,"explanation":"A description may identify costs and benefits without deciding between them. Evaluation must use those points to reach a supported reasoned judgement."}]},{"id":"7ada81cb-be7a-4002-989d-d873d306681d","cardType":"basic","points":1,"front":"For a new bypass road, what is the opportunity cost in the notes?","back":"Less spending on bus services and cycle lanes.","mcqOptions":[{"text":"Less spending on bus services and cycle lanes.","correct":true,"explanation":"An opportunity cost is the next best alternative forgone. If resources are used for the bypass, the notes identify less spending on bus services and cycle lanes."},{"text":"Less spending on hospitals and schools.","correct":false,"explanation":"This is a possible opportunity cost in another public spending decision, but it is not the cost identified for the bypass road. The notes specify less spending on bus services and cycle lanes."},{"text":"Less spending on fuel and maintenance.","correct":false,"explanation":"Fuel and maintenance are operating costs of transport rather than the opportunity cost stated for building the bypass. The correct answer is less spending on bus services and cycle lanes."},{"text":"More spending on bus services and cycle lanes.","correct":false,"explanation":"Building the bypass means resources cannot also be used for the alternative stated in the notes, so spending on bus services and cycle lanes would be lower, not higher."}]},{"id":"bb90d8be-15bd-4341-8772-52d5ee22b86a","cardType":"basic","points":1,"front":"If a bypass encourages more car journeys, what environmental cost may rise?","back":"Higher emissions.","mcqOptions":[{"text":"Higher emissions.","correct":true,"explanation":"More car journeys involve greater fuel combustion, which can release additional carbon dioxide and other pollutants. Therefore, higher emissions are an environmental cost that may result from the bypass."},{"text":"Lower emissions.","correct":false,"explanation":"More car journeys usually require more fuel to be burned, increasing pollution and greenhouse-gas emissions rather than lowering them. The environmental cost that may rise is higher emissions."},{"text":"Higher employment.","correct":false,"explanation":"Higher employment is a possible economic benefit, not an environmental cost. The environmental consequence asked about is higher emissions caused by additional fuel use from more car journeys."},{"text":"Reduced congestion.","correct":false,"explanation":"Reduced congestion may be an intended benefit of a bypass, but it is not an environmental cost that rises when car journeys increase. The correct cost is higher emissions."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"1.2 The basic economic problem","title":"The basic economic problem Flashcards","topbar":{"backHref":"/gcse/economics/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"58272247-935b-5310-ba93-396dd478a374","walled":"$L39"}],"$L3a","$L3b"]

1.2 The basic economic problem Flashcards

1.2 The basic economic problem Flashcards