CAIE IGCSE Economics 1.1.3 Economic Goods and Free Goods Questions
Practise Cambridge IGCSE Economics by distinguishing needs from wants and applying scarcity to real economic choices.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Explain why scarcity forces choices between competing wants.
- Distinguish needs from wants in the context of limited resources.
- Apply the basic economic problem to choices by households, firms and governments.
CAIE IGCSE Economics 1.1.3 Economic Goods and Free Goods Questions question 1
[Maximum number: 2]
South Korea makes use of both economic goods and free goods. Its output includes products with both elastic and inelastic supply. The country is building the world's first floating city, estimated to cost $180 m. This is to cope with rising sea levels caused by climate change. Governments take a number of measures to reduce greenhouse gases which contribute to climate change, including banning the burning of wood to heat homes.
Identify a difference between economic goods and free goods.
Identify a difference between economic goods and free goods.
Economic goods use up resources / need factors of production to produce them (1) free goods do not (1)
Economic goods are scarce / in limited supply (1) free goods are in unlimited supply (1).
Economic goods have an opportunity cost (1) free goods do not (1).
2
No marks for examples.
One mark for economic goods and one mark for free goods.
All question bank results loaded