Practise explaining scarcity as unlimited wants competing for finite resources and distinguishing it from a temporary shortage in production, energy and public spending contexts.
Discuss whether it is likely that economies that have an increase in labour and a high rate of technological innovation will come nearer to solving the economic problem.
For analysis of the impact of an increase in the labour supply and a high rate of technological innovation upon the goods and services produced. This could be illustrated with a diagram showing an outward shift in the production possibility curve. (up to 8 marks)
For explanation of the 'economic problem' in terms of unlimited wants and scarce resources.
(up to 2 marks)
For explanation of the impact of an increase in the labour supply on the capacity of an economy to produce goods and services.
(up to 4 marks)
For explanation of the impact of a high rate of technological innovation on the capacity of an economy to produce goods and services.
(up to 4 marks)
For evaluative comment on whether the economic problem can be solved. (up to 4 marks)
(8 marks maximum)