Economics 2281 · O Level · Production possibility curve (PPC) diagrams
Production possibility curve (PPC) diagrams — practice question
In 2020, Singapore saw both its population size and labour force fall. 2020 was a year of significant change across several Singaporean markets. Some shifted from disequilibrium to equilibrium. Even with all of these changes, Singapore still succeeded in raising its exports of goods and services.
(a)[2]
Identify two advantages of a reduction in a country’s population size.
(b)[4]
Explain the process by which a market moves from disequilibrium to equilibrium.
(c)[6]
Analyse, using a production possibility curve (PPC) diagram, the impact of a fall in the size of a country’s labour force on its economy.
(d)[8]
Discuss whether or not an increase in exports would 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: “Reduced pressure on resources / less food required” …