O-LevelEconomicsThe allocation of resources2281/11 · May/June 2017 · Q21 Mark

Helium is a gas that is limited in supply. It takes thousands of years to form from decaying radioactive rocks. The US government holds 35% of the world's supply and has been selling its stocks. Helium is essential in medical scanners. It is also used for party balloons which some say is a wasteful alternative use of a valuable good. Which concepts can be applied to the above statement?

Ademand and supply, government subsidy

Bexcess demand, resource allocation

Cfactors of production, private monopoly

Dopportunity cost, public sector

✓ Correct answer

D: opportunity cost, public sector

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2017 Paper 1 Variant 1, question 2.

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