O-LevelEconomicsThe basic economic problem2281/12 · Oct/Nov 2015 · Q21 Mark

The government of a prosperous country announced that it would offer free food to its citizens for a year. What would be the effect of this measure?

AAgricultural resources would become unlimited.

BHuman wants would become finite.

CMore resources would be devoted to food production.

DThe basic economic problem would be solved.

✓ Correct answer

C: More resources would be devoted to food production.

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Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2015 Paper 1 Variant 2, question 2.

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