IGCSE QUESTION ON PPC
3 Rich people in some countries are now working for more hours on average than poor people.
One reason for this is thought to be that well-paid jobs provide more job satisfaction. Gaining
enjoyment from work can lead to high labour productivity. 0455/22/O/N/17
(c) Analyse, using a production possibility curve diagram, how an increase in labour productivity will
affect an economy. [6]
2 Indonesia’s output is influenced by its factors of production. A production possibility curve diagram
can be used to show this relationship between resources and output. Indonesia does have extensive
fishing waters but does not actually catch many fish. Most of its fishing firms are small and they
compete against much larger foreign firms. These larger foreign firms have been attracted into
Indonesia’s waters because of increasing demand for fish. The price elasticity of demand for
different types of fish has changed in the last few years.
0455/22/M/J/17
(b) Explain two economic concepts shown by a production possibility curve diagram. [4]
3 Firms use different quantities of land, labour, capital and enterprise in producing their products.
The ways in which a country’s resources can be used, and the extent to which they are employed,
can be shown on a production possibility diagram. 0455/22/F/M/17
(c) Analyse, using a production possibility diagram, the effect on an economy’s output when
there is a change from full employment to unemployment. [6]
7 Many economists are predicting that relative poverty will increase whilst absolute poverty will fall
in both India and the United States of America. The level of poverty can be influenced by, for
example, education, the technology used and the number of new businesses created, including sole
proprietorships. 0455/23/M/J/16
(c) Analyse, using a production possibility curve, the effect of advances in technology. [6]
5 The unemployment rate in Wales fell from 8.2% in March 2013 to 6.8% in March 2014. One in four
workers in Wales is employed in the public sector. A high proportion of workers are employed in
multinational companies, including a Japanese car producer and a South Korean electronics firm.
0455/22/O/N/16
(c) Using a production possibility curve diagram, analyse the effect of a decrease in unemployment of
an economy’s output. [6]
(d) Using a production possibility curve diagram, analyse the effect of an increase in unemployment of
an economy’s output. [6]