A-LevelEconomicsBasic economic ideas and resource allocation9708/22 · Feb/Mar 2018 · Q220 Marks

Answer one question.

(a)Explain how governments face increasing opportunity cost in their decision-making. Use a production possibility curve diagram to support your answer.[8]
(b)Discuss whether decision-making is more effective when undertaken by governments in a planned economy rather than by individuals in a free market economy.[12]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2018). The mark or mark type is shown in brackets.

[2] knowledge and understanding illustrated with a correctly labelled diagram with a concave PPC
[2] For an explanation of the choice and opportunity cost facing governments in deciding which goods and services to produce in their economy
[1] application recognising that the opportunity cost increases as resources shift from the production of one type of good to another
[3] Explanation of why costs increase as the combination of goods produced changes with due reference to the suitability of resources.
[4] analysis of the advantages and disadvantages that arise when resources are allocated through central planning.
[4] Analysis of advantages and disadvantages that arise when resources are allocated through the free market.
[3] For evaluation of the strengths and weaknesses of the two systems
[1] Conclusion on which system is most effective.

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.