Economics 0455 · IGCSE · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
When deciding about university, students need to weigh the opportunity cost. People who complete university normally earn more than those who do not attend university. A larger number of graduates affects a country’s production possibility curve. Some economists argue that students ought to cover the entire expense of their university courses and accommodation. Others believe the government should meet part or all of the expense.
(a)[2]
Describe one possible opportunity cost when a student chooses to go to university.
(b)[4]
Explain why people who have graduated from university usually receive higher pay than those who have not attended university.
(c)[6]
Using a production possibility curve diagram, analyse how an increase in the number of graduates will affect an economy.
(d)[8]
Discuss whether graduates ought to pay the full cost of their university education.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Opportunity cost means the next best alternative forgone” …