CIE AS Topical Past Paper 2
1.5 Production possibility curves
9708/22/O/N/24
(a) With the help of a production possibility curve (PPC) diagram(s), explain the difference between constant and increasing opportunity costs and consider how choices in deciding which type of goods to produce in the short run may influence future economic growth. [8]
9708/21/O/N/24
(a) With the help of a diagram, explain the significance of a position within a market economy’s production possibility curve (PPC) and consider whether such a position is likely to be permanent. [8]
9708/23/M/J/24
(a) Use a production possibility curve (PPC) diagram to explain how a government in a mixed economy might allocate more resources to consumption and fewer resources to investment and consider a limitation of this approach to resource allocation. [8]
(b) Assess whether producers are the only ones to benefit when an economy decides to allocate additional resources to investment. [12] [Sample answer]
9708/21/O/N/22
(a) Explain, with the use of a diagram(s), how the production possibility curve of an economy could be affected by a decrease in the quantity of labour available, but an increase in its quality. [8]
9708/22/O/N/22
(a) Explain how a production possibility curve can be used to demonstrate scarcity, choice and opportunity cost. [8]
9708/22/F/M/22
(a) Explain with the help of a production possibility curve diagram(s) how a decision to re-allocate resources in an economy to produce more capital goods and fewer consumer goods would affect consumers in both the short run and the long run. [8]
9708/22/O/N/21
(a) Use a diagram(s) to explain how a production possibility curve can be used to show opportunity cost and why such a curve is usually drawn with increasing opportunity costs. [8]
9708/21/O/N/21
(a) With the aid of a diagram, compare what happens to an economy’s resources to cause a movement along its production possibility curve with what happens to an economy’s resources to cause a shift of its production possibility curve. [8]
9708/22/M/J/20
a) Use a production possibility curve diagram(s) to distinguish between the growth of an economy and a reduction in the number of unused resources in an economy and explain one reason that might cause each to occur. [8]
9708/21/M/J/20
(a) Explain, with the aid of a production possibility curve (PPC) diagram, why scarcity makes choice inevitable for firms and how each choice has an opportunity cost. [8]
9708/21/M/J/19
(a) Explain, with the help of diagrams, how (i) constant and (ii) increasing opportunity costs determine the shape of an economy’s production possibility curve. [8]
9708/22/F/M/19
(a) Show how a production possibility curve can be used to explain scarcity, choice and opportunity cost. [8]
9708/21/O/N/18
(b) Discuss whether enterprise is crucial to the outward shift of the production possibility curve in a mixed economy. [12]