O-LevelEconomicsThe basic economic problem2281/11 · May/June 2013 · Q11 Mark

A tractor factory runs out of important components and has to stop production. How does this illustrate the economic problem?

AThe factory lacks a competitive advantage.

BThe factory lacks economies of scale.

CThere are limited wants.

DThere is evidence of scarce resources.

✓ Correct answer

D: There is evidence of scarce resources.

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Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2013 Paper 1 Variant 1, question 1.

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