Economics 2281 · O Level · The factors of production
The factors of production — practice question
Several countries, Morocco among them, collect water from fog. Water is used in the primary, secondary and tertiary sectors. Over recent years, Morocco has expanded the amount and improved the quality of its resources, and has shifted more of them into the tertiary sector. The amount, quality and composition of a country’s resources are affected by several influences, such as its birth rate. Morocco’s birth rate decreased from 19.9 in 2016 to 18.7 in 2018.
(a)[2]
Define what a free good is.
(b)[4]
Explain, using examples, how the secondary sector differs from the tertiary sector.
(c)[6]
Analyse, using a production possibility curve (PPC), how an increase in the quality of its resources affects an economy.
(d)[8]
Discuss whether a decrease in a country’s birth rate will 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: “Zero opportunity cost” …