Economics 0455 · IGCSE · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
In a few countries, people with high incomes are now putting in more hours on average than those on low incomes. One explanation is that well-paid jobs are believed to offer greater job satisfaction. Enjoying work can result in high labour productivity.
(a)[2]
State one possible opportunity cost of working.
(b)[4]
Explain two reasons why older workers usually earn more than younger workers.
(c)[6]
Analyse, using a production possibility curve diagram, how a rise in labour productivity will affect an economy.
(d)[8]
Discuss whether the rich in one country will save more than the rich in another country.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “the next best alternative foregone” …