IGCSE ECONOMICS EXAM
QUESTIONS WITH DETAILED
ANSWERS LATEST UPDATED
, What is the basic economic problem faced by all societies [1]
A: Achieving happiness
B: An inefficient economic system
C: Rewarding factors of production
D: Scarcity of resources - ANSWERSD: Scarcity of resources
Which product is most likely to be classified as a free good? [1]
A Birthday presents
B Public transportation
C Seawater
D State (government-funded) education - ANSWERSC Seawater
Describe why free goods do not have an opportunity cost [2] - ANSWERSFree gds e.g.
seawater, are unlmtd in supply [1]
don't have opp cost cuz decision to consume free gd not have to come at expense (opp
cost) of other gds + svs [1]
Describe how the objectives of private sector firms differ from those operating in the
public sector [2] - ANSWERSprivate sector firms operate to earn profit i.e. personal gain
[1]
However (H.) public sector operates to provide a svs to society e.g. education +
healthcare [1]
Explain what is meant by the 'economic problem' [2] - ANSWERSFinite resources but
infinite wants + needs [1]
so econ has to make choices about, what how + for whom production should take [1]
these choices incur opp costs to the econ [1]
Explain why choices have to be made about how resources are allocated in an econ [2]
- ANSWERSscarcity means resources are lmtd in supply [1]
so not possible to meet everyone's wants + needs [1]
so econ choices have to be made [1]
QUESTIONS WITH DETAILED
ANSWERS LATEST UPDATED
, What is the basic economic problem faced by all societies [1]
A: Achieving happiness
B: An inefficient economic system
C: Rewarding factors of production
D: Scarcity of resources - ANSWERSD: Scarcity of resources
Which product is most likely to be classified as a free good? [1]
A Birthday presents
B Public transportation
C Seawater
D State (government-funded) education - ANSWERSC Seawater
Describe why free goods do not have an opportunity cost [2] - ANSWERSFree gds e.g.
seawater, are unlmtd in supply [1]
don't have opp cost cuz decision to consume free gd not have to come at expense (opp
cost) of other gds + svs [1]
Describe how the objectives of private sector firms differ from those operating in the
public sector [2] - ANSWERSprivate sector firms operate to earn profit i.e. personal gain
[1]
However (H.) public sector operates to provide a svs to society e.g. education +
healthcare [1]
Explain what is meant by the 'economic problem' [2] - ANSWERSFinite resources but
infinite wants + needs [1]
so econ has to make choices about, what how + for whom production should take [1]
these choices incur opp costs to the econ [1]
Explain why choices have to be made about how resources are allocated in an econ [2]
- ANSWERSscarcity means resources are lmtd in supply [1]
so not possible to meet everyone's wants + needs [1]
so econ choices have to be made [1]
