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Cambridge IGCSE Economics practice

Paper 2 structured question: Production possibility curve (PPC) diagrams

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Production possibility curve (PPC) diagrams

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Paper 2Structured Questions1 marks

The economy of Country A produces two goods: cars and computers. The PPC for Country A shows the trade-offs between these two goods.

Description

Production Possibility Curve of Country A

The PPC illustrates the maximum combinations of cars and computers that can be produced with the available resources.

CarsComputers
0100
5080
10050
1500
  1. a

    State the opportunity cost of producing 50 more cars when moving from 50 to 100 cars.

    Aim for approximately 1 distinct marking point.

    [1]

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Paper 2 structured question: Production possibility curve (PPC) diagrams

Paper 2Structured Questions3 marks

Description

Production Possibility Curve of Country B

The PPC shows the trade-offs between wheat and cloth production.

WheatCloth
0200
100150
20080
3000
  1. a

    Explain why the PPC is bowed outwards.

    Aim for approximately 3 distinct marking points.

    [3]