Economics 0455 · IGCSE · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
Several countries, Morocco among them, collect water from fog. Water is used in the primary, secondary and tertiary sectors. Over the last few years, Morocco has raised both the quantity and the quality of its resources and has shifted more of them into the tertiary sector. The quantity, quality and composition of a country’s resources are affected by a range of factors, including its birth rate. Morocco’s birth rate fell from 19.9 in 2016 to 18.7 in 2018.
(a)[2]
Define the term free good.
(b)[4]
Explain, with examples, how the secondary sector differs from the tertiary sector.
(c)[6]
Analyse, using a production possibility curve (PPC), the effect of an increase in the quality of its resources on an economy.
(d)[8]
Discuss whether a fall in a country’s birth rate is likely to benefit an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Has no opportunity cost” …