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1.2 The basic economic problem

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Question 1

Machine time is the limiting resource at a joinery workshop: its cutting machine can run for only 360 hours a month, and customer orders exceed what it can make under either allocation below. Each dining table takes 6 machine-hours and gives the workshop an estimated benefit of £240. Each bookcase takes 3 machine-hours and gives an estimated benefit of £105.

AllocationDining tablesBookcases
Current4040
Proposed2570

Analyse the effect on the workshop's estimated benefit of moving from the current allocation to the proposed allocation. Use the ideas of scarcity and opportunity cost in your answer.

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Markscheme

1.2 The basic economic problem Questions

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

77 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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