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2 questions on Scarcity, Choice and the Allocation of Resources (AQA specification 1.1.4) from the A-Level Economics papers, 2019–2020. Every question links to the official mark scheme at the page its answer begins on.
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Explain how a production possibility diagram can be used to illustrate some features of the fundamental economic problem.
1.1.5 Production Possibility Diagrams · 1.1.4 Scarcity, Choice and Opportunity Cost
Extract C (lines 14–15) states that ‘Rising prices will eventually also force builders in developing countries to explore alternatives to sand.’ Use the extracts and your knowledge of economics to assess the view that the increasing scarcity of sand is a problem best solved by market forces, rather than through government intervention.
1.1.4 Scarcity, Choice and Opportunity Cost · 1.8.1 The Price Mechanism
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