QUESTION 42 (5 marks)
A regional economy moves from B to A on the supplied diagram. Later, successful research raises its productive capacity. Explain the distinction between the two changes, including one limitation of the PPC model.
Practice marking scheme
Answer
B to A uses existing resources more fully; new technology can shift the frontier outward.
Working
B is inside the original frontier, indicating underused resources or inefficiency. A is on it, with higher output feasible under existing capacity. Research can enable additional output from the same inputs, shifting PPC1 to PPC2. A PPC abstracts from prices, distribution and the changing quality of goods; output gains alone do not measure wellbeing.
Marking criteria
- Explains utilisation rather than capacity growth for B to A. [2 marks]
- Explains an outward capacity shift from innovation. [2 marks]
- States a meaningful limitation. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabusCompare your working with the guide above.