CAIE A-Level Economics 1.1.1 Scarcity Problem

CAIE A-Level Economics 1.1.1 Scarcity Problem
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise explaining scarcity as unlimited wants competing for finite resources and distinguishing it from a temporary shortage in production, energy and public spending contexts.

How this is tested

  • distinguish permanent resource scarcity from a temporary market shortage or supply gap
  • link finite resources and alternative uses to the need for choice and opportunity cost
  • identify evidence of scarcity when satisfying one want requires another benefit to be forgone

Question 4

[Maximum number: 1]

What is essential to eliminate scarcity?

A

the existence of sufficient resources to meet all needs and wants

B

producers consistently produce in excess of demand

C

the government has a surplus budget

D

there is equilibrium in all markets