Paper 1 · November 2018 · Opportunity Cost and Scarcity
The basic economic problem is that
Aresources are limited in supply.
Bthere is a problem of poverty.
Cthere are shortages due to drought.
Dthere is the existence of opportunity cost.
Explanation
The basic economic problem is scarcity: resources are limited in supply relative to unlimited wants. Opportunity cost is a consequence of scarcity, not the problem itself, and poverty and drought are particular symptoms rather than the general problem.
ZIMSEC Economics 6073/1 Paper 1, November 2018, Q1