Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

(a)[8]

Explain how governments experience rising opportunity cost when making decisions. Support your response with a production possibility curve diagram.

(b)[12]

Discuss whether decision-making is more effective when governments make it in a planned economy than when individuals do so in a free market economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: AO1: Knowledge and understanding shown by a properly labelled diagram featuring a concave PPC.

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