A-LevelEconomicsBasic economic ideas and resource allocation9708/22 · Oct/Nov 2024 · Q320 Marks

OR

(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]
(b)Assess whether a market economy is always the best economic system to effectively answer the three basic questions of resource allocation.[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 (Oct/Nov 2024). The mark or mark type is shown in brackets.

[AO1 1] Accurately drawn and labelled PPC (curved) for increasing opportunity cost.
[AO1 1] Accurately drawn and labelled PPC (straight line) for constant opportunity cost.
[AO1 1] Explanation of the difference (e.g., constant = no change in trade-off, increasing = increasing trade-off).
[AO2 1] Analysis of influence of choices (consumer vs. capital goods) on future economic growth.
[AO2 1] Explanation of short-run growth for consumer goods but potential unsustainability.
[AO2 1] Explanation of short-run negative impact for capital goods but long-term sustainable growth.
[AO3 1] Valid evaluation based on the analysis.
[AO3 1] Valid conclusion.

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