Edexcel IAL Economics 1.3.1.4b PPF movements and shifts

Quantitative skills assessed

QS4: Construct and interpret a range of standard graphical forms

QS9: Interpret, apply and analyse information in written, graphical, tabular and numerical forms.

Indicative content guidance

Answers must be credited by using the level descriptors (below) in line with the general marking guidance.

The indicative content below exemplifies some of the points that candidates may make, but this does not imply that any of these must be included. Other relevant points must also be credited.

Knowledge, application and analysis ( 12 marks) - indicative content

- PPF- shows the maximum possible production using all available resources

Factors that could cause a rightward shift of a country's PPF

- Population increase from 9.4 m to 14.1 m (UAE) $/ 12.1 \mathrm{~m}$ to 18.8 m (Bolivia)/ 113.9 m to 180.2 m (Philippines) increases the size of the available workforce

- More immigration- increases the size of the labour force and production possibilities

- Offering more work visas, offer payments to migrants may encourage immigration, increasing labour force

- Families having more children, will eventually result in larger workforce

- Use of benefits, subsidies and tax breaks to encourage families to have more children, to increase workforce

- Investment in capital goods will increase productivity

- Use of subsidies and tax breaks to encourage investment in capital goods

- More research and development will result in better production processes increasing output

- Encourage research and development- helping to improve innovation and increasing productive potential

- Development of artificial intelligence may replace tasks completed by humans

- Increase spending on education to develop skills to improve productivity

- Increase spending on healthcare to improve health- reducing time lost to absenteeism, sickness

- Increase retirement age so people stay in the labour market for longer

- Reduce school leaving age so that people start to become productive earlier

- Offer training courses to improve skills and productivity

- Discovery of new natural resources

PPF diagram- accept straight line or curved PPFs

Capital goods

NB Award maximum of Level 3 if no diagram is included

Level

Mark

Descriptor

0

No rewardable material.

Level 1

1-3

Displays isolated, superficial or imprecise knowledge and understanding of economic terms, principles, concepts, theories and models.

Use of generic material or irrelevant information or inappropriate examples.

Descriptive approach which has no chains of reasoning.

Level 2

4-6

Displays elements of knowledge and understanding of economic terms, principles, concepts, theories and models.

Limited application of knowledge and understanding to economic problems in context.

A narrow response or superficial, only two-stage chains of reasoning in terms of cause and/or consequence.

Level 3

7-9

Demonstrates accurate knowledge and understanding of economic terms, principles, concepts, theories and models.

Ability to apply knowledge and understanding to some elements of the question. Some evidence and contextual references are evident in the answer. Analysis is clear and coherent. Chains of reasoning in terms of cause and/or consequence are evident but they may not be developed fully or some stages are omitted.

Level 4

10-12

Demonstrates accurate and precise knowledge and understanding of economic terms, principles, concepts, theories and models.

Ability to link knowledge and understanding in context, using appropriate examples which are fully integrated to address the broad elements of the question.

Analysis is clear, coherent, relevant and focused. The answer demonstrates logical and multi-stage chains of reasoning in terms of cause and/or consequence.

Evaluation (8 marks) - indicative content

- Immigrating to a country may not be attractive if jobs are not available in the right areas

- Immigration may cause pressure on public services

- If immigrants do not find suitable opportunities productive potential will not rise

- Payments to migrants create an opportunity cost

- Financial rewards for having more children are unlikely to exceed the costs of having more children

- Subsidies to encourage investment in capital goods create opportunity costs

- Much research and development is unproductive and not all ideas will improve production possibilities

- Artificial intelligence may come with unknown risks and costs

- Spending on education may be in the wrong areas- resulting in smaller impact on productive potential

- Increase in spending on healthcare will only have an impact if it is preventative

- Increasing the retirement age may cause unrest as people are forced to work longer

- If people leave education earlier they may be less skilled

- Possible information failure, government failure if training is in wrong areas

- Time lag e.g. long delay between increased birth rate and increased production possibilities

Level

Mark

Descriptor

0

No rewardable material.

Level 1

1-3

Identification of generic evaluative comments.

No supporting evidence/reference to context.

No evidence of a logical chain of reasoning.

Level 2

4-6

Evidence of evaluation of alternative approaches.

Some supporting evidence/reference to context.

Evaluation is supported by a partially-developed chain of reasoning.

Level 3

7-8

Evaluation recognises different viewpoints and/or is critical of the evidence, leading to an informed judgement.

Appropriate reference to evidence/context.

Evaluation is supported by a logical chain of reasoning.