Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

(a)[8]

Using a production possibility curve diagram(s), compare growth in the productive capacity of an economy with growth that occurs when the amount of unused resources in an economy falls. Explain one reason that could lead to each one.

(b)[12]

Discuss the drawbacks of a planned economy and judge whether moving to an economy in which many resources are allocated by market forces is likely to bring an overall benefit.

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