Economics · May / June 2017 · Paper 11 · Question 2

Helium is a gas that is limited in supply. It takes thousands of years to form from decaying radioactive rocks. The US government holds 35% of the world's supply and has been selling its stocks. Helium is essential in medical scanners. It is also used for party balloons which some say is a wasteful alternative use of a valuable good. Which concepts can be applied to the above statement?

1. Ademand and supply, government subsidy
2. Bexcess demand, resource allocation
3. Cfactors of production, private monopoly
4. Dopportunity cost, public sector

As printed in the paper