ExpertEasy2 marksStructured
AQA GCSE · Question 12 · How markets work
Explain one reason why an individual consumer may have to make an economic choice.
Explain one reason why an individual consumer may have to make an economic choice.
How to approach this question
1. State the core economic problem: scarcity. 2. Explain what this means for a consumer: unlimited wants but limited resources (like income or time). 3. Conclude by linking this to the necessity of making a choice.
Full Answer
The basic economic problem is scarcity, which arises because people have unlimited wants but resources are finite. For an individual consumer, the most common scarce resource is money or income. Since they cannot afford everything they desire, they are forced to make choices. Every choice involves an opportunity cost – the value of the next best alternative that is given up. For instance, choosing to buy a video game might mean giving up the opportunity to go to the cinema.
Common mistakes
Giving a vague answer without explicitly mentioning scarcity or the conflict between limited resources and unlimited wants.
Practice the full AQA GCSE Economics Paper 1
27 questions · hints · full answers · grading
More questions from this exam
Q01Which of the following best describes the equilibrium price in a market?EasyQ02Which of the following could lead to a reduction in the quantity supplied of a product?MediumQ03A firm can reduce its average costs in the long run by making effective use of a large machine. T...EasyQ04Which of the following would be included in the tertiary sector of an economy?EasyQ05Which of the following is an example of a variable cost?Easy