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1.2 The basic economic problem

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Question 1

Mereford Council is considering building a district heating facility on land currently used for community allotments. The facility would cost £9 million and employ 55 people during an 18-month construction period. It would supply heat to 1,400 homes, use wood pellets brought in by four lorry deliveries each week, and cost an estimated £650,000 a year for fuel and maintenance.

Analyse how the costs and benefits of proceeding with the facility may affect economic, social and environmental sustainability.

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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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