Quelpr
6 marksCentral Problem of Economics

CAPE Economics Unit 1 · 2008 · Paper 2 · Question 1(b)(iii)

Using the production possibilities frontier, discuss the following concepts:

Increasing Opportunity Cost

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)With the aid of a diagram illustrating education and medical services, explain what is meant by 'production possibilities frontier (PPF)'.[12 marks]
  2. 1(a)(ii)State TWO assumptions upon which the PPF is based.[4 marks]
  3. 1(b)(i)Scarcity[6 marks]
  4. 1(b)(ii)Choice[6 marks]
  5. 1(c)(i)aAllocative Efficiency[3 marks]
  6. 1(c)(i)bProduction Efficiency[3 marks]
  7. 1(c)(ii)Using the production possibilities frontier, illustrate the concepts of 'efficiency' and 'allocative efficiency'.[4 marks]
  8. 1(d)(i)Decrease in resources[3 marks]
  9. 1(d)(ii)Improvement in technology[3 marks]

More practice: the rest of this paper · more Central Problem of Economics questions · all CAPE Economics Unit 1 past papers