The nature of the basic economic problem — Paper 1 · IGCSE Economics (9-1) 0987

4 Which topic is included in microeconomics? A economic growth B elasticity of demand C inflation D the balance of payments

1 marks

Answer: B

This question in 0987/11 May/June 2020

4 Microeconomics analyses choices in various situations. Which area of economic study does it not include? A costs and revenues of a firm B individual consumer behaviour C policies for economic growth D wages for different occupations

1 marks

Answer: C

This question in 0987/12 May/June 2020

1 What causes economic agents to make choices? A limited needs and wants B the existence of finite resources C the existence of free goods D the market mechanism

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2020

4 What is not included in microeconomics? A economies of scale B forms of competition C individual demand D the inflation rate

1 marks

Answer: D

This question in 0987/12 May/June 2021

1 To help reduce the price of oil, new supplies are needed. However, objectors oppose exploration of new sites because of the environmental damage it may cause. Why is this statement an example of the basic economic problem? A Oil is a limited resource. B Oil is expensive. C The exploration involves demand and supply. D There are external costs involved in production.

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2021

1 What is an example of a free good? A defence B education C health services D sunshine

1 marks

Answer: D

This question in 0987/12 May/June 2022

1 What is the cause of scarcity in an economy? A high employment levels B high investment levels C unlimited resources D unlimited wants

1 marks

Answer: D

This question in 0987/11 May/June 2023

1 What is part of the economic definition of scarcity? A high levels of taxation B low levels of investment C unequal distribution of income D unlimited consumer wants

1 marks

Answer: D

This question in 0987/12 May/June 2023

1 Which statement is correct? A Economic goods are not scarce. B Economic goods have no opportunity cost. C Free goods are scarce. D Free goods have no opportunity cost.

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2023

1 Why will scarcity always exist? A There are high costs of production. B There are low levels of education. C There are unlimited resources. D There are unlimited wants.

1 marks

Answer: D

This question in 0987/12 May/June 2024

1 Which economic question is least likely to arise as a result of scarcity? A For whom will we produce? B How will we produce? C What will we produce? D When will we produce?

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2024

1 A university rejects 2000 qualified applicants who wish to study there. Which factor of production could have caused the university to make this decision? A infinite quantity of capital B scarcity of labour C surplus of land D unlimited supply of enterprise

1 marks

Answer: B

This question in 0987/12 May/June 2025

1 A government wants to build a new hospital. What is most likely to prevent the government from doing this? A People in the country cannot afford healthcare. B People in the country would go abroad for healthcare. C The government cannot agree how big the hospital should be. D The government does not have enough money.

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2025