A regional health authority has limited resources to allocate to two healthcare sectors: 'preventative healthcare clinics' and 'acute hospital treatments'.
Draw a production possibility diagram showing the potential provision of these two services. Assuming these resources remain fully and efficiently employed, show on this diagram the effect of allocating more resources to preventative healthcare clinics.
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.