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Economics IGCSEPDF 16
118 pagesrevision 46932
PDF 16
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Outward Shift (PPC shifts to the right)
Cause:
Quantity:
•
•
higherimmigration), increase in capital stock(new factories/machinery).
•
andtraining for the workforce (improving humancapital).
•
theeconomy can now produce more of bothgoods, leading to a higher potential standard of
living.
An increase inthe
e.g., discovery of newresources,increase in the labor force (population growth,
quantity
or
quality
of the economy's factors of production.
Quality:
e.g., improvements in technology(leading to higher productivity), better education
Consequence (Economic Growth):
An outward shift represents economic growth. It means
Inward Shift (PPC shifts to the left)
Cause:
Quantity:
•
•
working-age population), depletion of natural resources.
• • productivepotential,potentiallyleadingto
Adecreaseinthe
oftheeconomy's factors of production.
e.g.,naturaldisasters,wars,reductioninthelaborforce (emigration, decline in
quantity quality
or
Quality:
Consequence (Economic Decline):
e.g.,deteriorationofinfrastructure,lackofinvestment in education/technology.
Aninwardshiftrepresents a reduction in the economy's
economic contraction
or a decrease in the standard
of living.
PAST-PAPER QUESTIONS
Structured Questions
(unsolved)
1- Define
whatismeantbya
Production Possibility Curve (PPC)
. [2]
2- Explain
the
significance
ofaproductionpoint
PPC.[4]
inside
aPPCand a production point on its
3- Draw and fully label a PPC diagram showing the production of two goods, capital goods
and consumer goods. [4]
4- Analyse how an increase in a country's labour productivity can be shown using a PPC
diagram and what this implies for economic growth. [6]
5- A government decides to increase spending on healthcare at the expense of education.
Using the concept of a PPC, discuss the implications of this decision. [8]
Multiple Choice Questions (MCQ)
1-If an economy is producing at a point
inside
its PPC, what does this indicate?