Cambridge International AS & A Level

Economics
9708
Topic : Scarcity , Choice And Opportunity Cost

Economics Workbook

Question Paper

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1. What is the fundamental economics problem ?
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2. What are resources ?

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3. Describe the difference between a want and a need .

WANT Need

4. Why does scarcity occur ?

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5. Explain why individuals, firms and governments have to make

Choices ?
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6. Define the term ‘Opportunity Cost ‘
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7. Describe the three basic questions of resources allocation .

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Analysis

8. Explain why the Indian government faces a fundamental

economic problem when planning a budget ?

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9. What does the indian government need to think about when

setting its budget?

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10. Explain how opportunity cost can be applied to the

budgetary choices that have to be made Explain which of the
three resources allocation questions the indian government
has addressed in its budget?

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BLANK PAGE