4 marksCentral Problem of Economics
CAPE Economics Unit 1 · 2014 · Paper 2 · Question 1(b)(i)
State TWO differences between a 'command economy' and a 'free market economy'.
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- 1(a)(i)Define the term 'scarcity'.[2 marks]
- 1(a)(ii)Draw and label a diagram of the production possibilities frontier (PPF) for Utopia.[3 marks]
- 1(a)(iii) a)Using the PPF from (a)(ii), explain how the concept of opportunity cost relates to the problem of scarcity.[5 marks]
- 1(a)(iii) b)Using the PPF from (a)(ii), explain how economic growth can be achieved in Utopia.[3 marks]
- 1(b)(ii)Given the disadvantages of a centrally planned economy, discuss TWO possible economic reasons for the collapse/downfall of this type of economic system over…[8 marks]
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