In 2014 Cuban doctors were given pay rises that significantly increased their salaries. This made doctors' pay more than twice that received by nurses. Cuba is devoting more resources to both medical care and tourism, altering the country's production possibility curve. Living standards are increasing in the country but at a slower rate than some other nearby countries.

Mark scheme

Marking points from the official mark scheme (May/June 2016). The mark or mark type is shown in brackets.

1. [1] A curve that shows the maximum output of two types of products / combination of two products
2. [1] that can be made with given resources/technology
3. [1] it shows opportunity cost
4. [1] Allow 1 mark for some understanding shown about potential maximum output
5. [2] Allow up to 2 marks for a diagram which is explained – with correct labelling (1) and correct curve (1)
6. [1] Labour which is human effort
7. [1] e.g. tourist guides
8. [1] Land which is natural resources
9. [1] e.g. beaches
10. [1] Capital which is human-made goods and services used in production
11. [1] e.g. hotels
12. [1] Enterprise which is risk bearing and decision making
13. [1] e.g. may be undertaken by the owner of a hotel
14. [1] Doctors need higher qualifications
15. [1] take longer to train
16. [1] reduces supply
17. [1] makes supply more inelastic
18. [1] Doctors are more skilled
19. [1] more productive / efficient
20. [1] in higher demand
21. [1] Doctors may have a more powerful professional organisation / trade union
22. [1] giving them greater bargaining power
23. [1] Doctors maybe a different gender to nurses
24. [1] discrimination may occur
25. [1] Developing countries tend to have lower income per head / greater poverty
26. [1] reducing the goods and services their people can buy
27. [1] Developing countries tend to have higher population growth
28. [1] this can increase the dependency ratio
29. [1] reducing resources available to e.g. improve housing conditions
30. [1] Developing countries tend to have lower life expectancy
31. [1] health care tends to be less readily available / lower quality
32. [1] Developing countries tend to have a lower standard of education
33. [1] children likely to have fewer years at school / attend university / gain well paid employment / more productive
34. [1] Developing countries tend to have more people employed in the primary sector
35. [1] work in the primary sector tends to be more physically demanding/lower paid
36. [1] Some people in developed countries may experience lower living standards
37. [1] as income may be unevenly distributed / there is relative poverty
38. [1] Working hours may be lower in developing countries
39. [1] which increases leisure time
40. [1] The informal economy may be greater in some developing countries
41. [1] meaning that output may be higher
42. [1] Obesity may be more of a problem in developed countries
43. [1] reducing the health of the population
44. [1] Some jobs in the primary sector are well paid
45. [1] e.g. in the oil industry