Economics (AS & A Level) · Feb / March 2021 · Paper 22 · Question 2

increased use of its existing labour, and

an increased availability of natural resources For knowledge and understanding of a production possibility curve and application to show an increased use of its existing labour. For a diagram of a PPC with appropriately labelled axes (1)

showing a movement from a point within a PPC to a point on or nearer to the PPC curve (1)

For an explanation of how an improved utilisation of resources results in the change shown (Up to 2 marks) (Up to 4 marks) For knowledge and understanding of a production possibility curve and application to show an increased availability of natural resources. For a diagram of a PPC with appropriately labelled axes (1)

showing a shift outward of the curve (1)

For an explanation of how an increased availability of natural resources results in the change shown (Up to 2 marks) (Up to 4 marks) 8 An increased use of existing labour will lead to a fall in unemployment, and this will result in increased total output as the point within the curve moves closer to the production frontier. There is improved utilisation of labour resources. An increased availability of natural resources will increase the potential output of the economy. It is also likely that total output will rise.