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1.2 The basic economic problem

1.2 The basic economic problem

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Question 9

A firm can produce the same output using Method X, which is cheaper but creates more pollution, or Method Y, which costs more, creates more local jobs and produces less pollution. Which conclusion is best supported?

[1]
A

Method X must be chosen because economic sustainability is the only consideration

B

Method Y must be chosen because environmental benefits always outweigh costs

C

The decision involves economic, social and environmental trade-offs, so the preferred method depends on their relative importance

D

There is no economic choice because both methods produce the same output

Markscheme

1.2 The basic economic problem Questions

  1. GCSE
  2. /Economics
  3. /1.2 The basic economic problem

29 exam-style questions on OCR GCSE Economics 1.2 The basic economic problem, covering 1.2.1 Scarce resources and unlimited wants, 1.2.2 The economic problem, 1.2.3 Opportunity cost, and 1.2.4 Costs and benefits of economic choices. Each one has a worked solution and a mark scheme showing where the marks go.

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