5 marksCentral Problem of Economics
CAPE Economics Unit 1 · 2017 · Paper 2 · Question 1(b)(i)
Explain, with the aid of a PPF diagram, the concept 'opportunity cost'.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 1(a)(i)Define the term 'price elasticity of supply'.[2 marks]
- 1(a)(ii)Define the term 'income elasticity of demand'.[2 marks]
- 1(b)(ii)Use the information in Table 1 to calculate the price elasticity of supply when the price changes from
9 to10. Interpret your results.[8 marks] - 1(c)Evaluate the CEO's claim that expanding physical capacity to meet high demand will allow the firm to benefit from economies of scale.[8 marks]
More practice: the rest of this paper · more Central Problem of Economics questions · all CAPE Economics Unit 1 past papers