Economics 0455 · IGCSE · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
Worldwide spending on the health sector, from both private and public sectors, is greater than that of all other sectors, including education and defence. Money invested in education and the health sector has led to the introduction of new life-saving technology. Nevertheless, the demand for some vaccinations has fallen over time, causing the demand curve for vaccinations to move left.
(a)[2]
Define investment in economic terms.
(b)[4]
Explain two causes of a leftward shift in a product’s demand curve.
(c)[6]
Analyse, using a production possibility curve diagram (PPC), the impact of higher investment in both education and the health sector.
(d)[8]
Discuss whether consumers would gain more from healthcare being supplied by the private sector or the public sector.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Expenditure on capital goods” …