O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2021 · Q31 Mark

Helium is a gas that is limited in supply because it takes thousands of years to form. The US government holds 35% of the world's supply of helium and has been selling its stocks. Helium is essential in medical scanners. It is also used for party balloons, which is a wasteful alternative use of a valuable good. Which two concepts apply to this statement?

Ademand and supply, government subsidy

Bexcess demand, resource allocation

Copportunity cost, private monopoly

Dpublic sector, factors of production

✓ Correct answer

D: public sector, factors of production

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 3.

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