Economics 2281 · O Level · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
In some countries, richer people are now working longer hours on average than poorer people. One explanation is that well-paid jobs are believed to give greater job satisfaction. Finding work enjoyable can result in high labour productivity.
(a)[2]
What could be a 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, the effect on an economy of a rise in labour productivity.
(d)[8]
Discuss whether people who are rich in one country will save more than people who are 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: “Opportunity cost means the next best option that is sacrificed” …