Extract C (lines 14–16) states: ‘With the mothballing of several major assembly plants and food-processing hubs, an additional 1,500 facilities lay idle, significantly increasing the amount of idle resources in the economy.’
Draw a production possibility curve (PPC) diagram for an economy producing capital goods and consumer goods to show an increase in spare capacity (idle resources) in the economy.
123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.