Unit 1 · Basic Economic Concepts
1.1 Practice Scarcity
Guiding question
Can you apply MOD-1.A.1 to a scenario you have not seen before, not just recite the definition?
How the real paper is built
The ministry sets half multiple choice and half written answer in every subject. The two halves are not the same skill. In the multiple-choice half you have to spot the wrong options quickly — and the wrong options are built out of the mistakes students really make. In the written half nobody gives you the answer to recognise; you have to produce it, in your own words, with a reason.
Practise both. Being good at one half and weak at the other costs you exactly half the paper.
1
Which of the following best explains why scarcity exists?
2
A furniture company buys a new industrial saw to cut lumber faster. Which economic resource does the saw represent?
3
Which of the following is most accurately described as a free good rather than an economic good?
4
A wealthy nation discovers a large new oil reserve within its borders. Which statement is most accurate?
Level 1 · say what it is
1(a)
Define scarcity, and identify which two things must both be true for scarcity to exist.
[2 marks]Level 2 · explain why
1(b)
A national government has a fixed annual budget. It is currently deciding between funding a new highway system and funding a national healthcare expansion — it cannot afford both in full this year. Explain how this scenario illustrates scarcity, and identify which economic resource is most directly the scarce one in this decision.
[3 marks]Keep reading — this lesson marks itself done automatically.