Name the next best alternative given up, not every alternative. On a PPC, a point inside the curve means unused resources; a shift means more or better resources.
Velmora's government has 50 billion crowns to spend next year. Its departments ask for a total of 80 billion crowns. What does this situation show?
Question 5
A bakery owns ovens, mixers and delivery vans. Which factor of production are these?
Question 6
Which of these is land as a factor of production?
Question 7
What is the reward for enterprise?
Question 8
A coal miner in Tarsland loses their job when the mine closes. Software firms in the same town have vacancies, but the miner does not have the skills for them. What does this show?
Question 9
Which change would most likely increase the geographical mobility of labour?
Question 10
Which change increases the quality, rather than the quantity, of a factor of production?
Question 11
What is meant by opportunity cost?
Question 12
Lena has one free Saturday and can do only one of three things: work in a café for 40 dollars, babysit for 30 dollars, or revise for an exam. Lena chooses to revise and values each job only by its pay. What is the opportunity cost of revising?
Question 13
A farmer can use a field to grow wheat, barley or potatoes. Barley would earn more than potatoes. The farmer grows wheat. What is the opportunity cost of growing wheat?
The diagram shows a country's production possibility curve (PPC). The country produces at point X. What does point X show?
Question 15
Production possibilities for Velmora
Combination
Machines (units)
Food (tonnes)
A
0
100
B
10
90
C
20
70
D
30
40
E
40
0
The table shows combinations of machines and food that Velmora can produce when it uses all its resources efficiently. What is the opportunity cost of increasing production of machines from 20 to 30?
Question 16
Which change would shift a country's PPC outwards?
Question 17
A PPC is usually drawn bowed outwards from the origin. What does this shape show?
The diagram shows a country's PPC moving from PPC1 to PPC2. What could have caused this?
Paper 2 questions
More machines in TarslandPaper 2, Section B style · 20 marks
Tarsland produces consumer goods, such as clothing and food, and capital goods, such as machines and tools. Capital goods are 20% of its output. The government wants firms to raise this share to 30% within five years. At present, 6% of Tarsland's labour force is unemployed.
0 words · a sentence or two
0 words · about 60 to 100 words
0 words · about 100 to 150 words
0 words · about 200 to 300 words
Closing the coal mines in VelmoraPaper 2, Section B style · 20 marks
Velmora's government closed its last coal mines in 2026, and 15 000 miners lost their jobs. Most of them live in the north, but most job vacancies are in the south, where house prices are twice as high. Many of the vacancies are in computing and health care. The government is considering a free retraining programme for the former miners.