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JC2 H2 Economics — Discuss whether economic growth solves the problem of scarcity (15)
7
Edited by Rushil Srinath · Feb 24, 2026
b) Discuss whether economic growth solves the problem of scarcity (15)
Economic growth may solve the problem of scarcity. Actual growth is the increase in the production of goods and services where the current idle factors of production are now put to use due to an increase in demand for goods and services. For example, in 2024, Taylor Swift made only one stop in Asia which was Singapore and had sold out all 6 shows. Fans from other parts of Asia got their hands on the tickets thus needing to book flights to Singapore. This caused the demand for air tickets to Singapore to spike, causing a shortage. There is an upward pressure on price, incentivising firms to produce more tickets to increase revenue and profit. Hence there was an increase in the production of air tickets to Singapore. Hence, the problem of scarcity is solved to an extent when more goods/services are produced to meet the unlimited wants of society.
Marked by Rushil Srinath, Head of Economics
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This is an actual student's work.
JC2 student, March 2025. Essay 12 of 18 graded that term.
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Rushil Srinath
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Economics is a new subject for most students. It has little precedent at the secondary school level, yet many of my students have found it to be one of the most rewarding disciplines. It teaches students to analyse economic events and to understand how these forces shape society at large.
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