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1.2 The basic economic problem

1.2 The basic economic problem

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Question 2

During summer, demand for water in Bayhaven is estimated to exceed its existing supply by 12%. A proposed desalination plant could provide 20 million litres a day and create 35 permanent jobs. It would increase the average household water bill by £48 a year and initially use as much electricity as 18,000 homes. The operator plans to obtain 60% of its electricity from offshore wind within five years. Evaluate whether building the desalination plant would be a sustainable economic choice for Bayhaven.

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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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