Use a labelled PPC to explain why an inside point shows idle resources, a point on the curve uses resources efficiently and an outside point is currently unattainable.
Sweden has a mixed economic system. In 2018, it was operating at a point inside its production possibility curve (PPC). In 2018, the country's schools employed nearly 2500 extra teachers. A few of these had previously been actors. A higher number had previously been government officials involved with regulation of Swedish monopolies.
Explain the difference between a point inside a PPC and a point outside a PPC.
Logical explanation which might include:
A point inside indicates unemployed resources (1) inefficient use of resources / wasted resources (1) output is below potential output (1) an attainable point (1).
A point outside is unattainable (1) not enough resources / beyond productive potential / only achievable with more resources / only achievable with better quality resources / not achievable with current resources / will be possible with future economic growth (1).
4
Maximum of 2 marks for point inside and a maximum of 2
marks for point outside.