Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

(a)[8]

Explain, using a diagram, how a movement along a production possibility curve (PPC) differs from a shift of the curve, and judge whether producing more of one product always involves an equal opportunity cost.

(b)[12]

Assess the extent to which it is always necessary to increase the size of the labour factor of production in order to cause an outward shift of the production possibility curve.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Accurately labelled PPC diagram with two products shown on the axes.

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