Practise reading PPC slope and movements to calculate opportunity cost and explaining why specialised resources create increasing costs while a straight curve implies constant…
Explain with the help of a diagram why production possibility curves are usually drawn with increasing opportunity costs, and show how they can be used to illustrate scarcity.
For knowledge and understanding of production possibility curves and why they are usually drawn with increasing costs.
For a production possibility curve accurately drawn with appropriate axes (1 mark) and displaying increasing opportunity costs
(1 mark) (up to 2 marks)
For an explanation of why increasing opportunity costs arise as a movement along the opportunity cost curve takes place.
For application showing how production possibility curves can be used to illustrate scarcity with due reference to choice and opportunity cost and that points outside the curve are unattainable.