Economics 9708 · AS & A Level · Production possibility curves
With the aid of a diagram, explain the importance of a position inside a market economy’s production possibility curve (PPC) and judge whether it is likely to be permanent.
Assess whether consumers always benefit when the government of a mixed economy cuts back the role of the market mechanism in allocating resources.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3 marks): A PPC diagram, with the axes labelled correctly, for example manufactured/agricultural goods or consumer/capital goods or Good A/Good B (1); the PPC must touch both axes (1); a position inside the PPC is shown clearly. (1)” …