Specification point 1.1.4 · Theme 1
Nature of economics · Introduction to markets and market failure
Questions tagged to this specification point
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Long-form evaluation and discussion
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Questions built around exam extracts
Case study · The market for fish
Discuss the likely impacts on an economy of specialising in the fishing industry. Use a production possibility frontier diagram in your answer.
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Focused calculations, explanations and diagrams
Calculate the opportunity cost of the decision by the farmer to harvest 6 units of wheat this year at point Y (movement from point X to point Y).
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Explain the impact on efficiency of producing at point W in the following year.
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The diagram shows the production possibility frontier of an economy. Assuming the economy is at point W, annotate the diagram to show the opportunity cost of producing more consumer goods.
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Calculate the original and the new opportunity cost of producing 50 capital goods. You are advised to show your working.
Explain one characteristic of the economy at position W.
The diagram shows the production possibility frontier for the BBC. Assuming the BBC is at point W, annotate the diagram to show the opportunity cost of providing more educational programmes.
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Explain, using marginal analysis from the table above, the concept of opportunity cost. (You may use the last column in answering the question.)
Quick checks of economic understanding
The diagrams below show movements from position X to Y on production possibility frontiers. In which one of the diagrams does the movement from X to Y illustrate the most likely impact on Madagascar’s economy of a natural disaster such as a cyclone?
Which one of the following would be most likely to help the farmer reach point Z? An increase in
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The diagrams show movements from position X to Y on production possibility frontiers. In which one of the diagrams does the movement from X to Y illustrate the most likely impact on the US economy of a natural disaster such as HurricaneOption AOption A Option BOption B Harvey?
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Which one of the following was the most likely cause of the movement in the production possibility frontier from XY to XZ?
Which one of the following is the most likely effect of an economy producing more capital goods?