Why is the economic problem a problem

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Quesiton: 1. Why is the economic problem a problem?

2. Is the problem of scarcity in the UK greater now than it was in 1970?

3. Apply the concept of opportunity cost to:

(a) A student who stays in full-time education after the age of sixteen.

(b) A firm which borrows funds from a bank to buy a new machine.

(c) A government which finances increased spending on road construction by an increase in taxation.

(d) A home owner who carries out home improvements on a DIY basis in his or her spare time.

Reference no: EM132180534

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