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Question 19N.1.SL.TZ0.4

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Date November 2019 Marks available [Maximum mark: 25] Reference code 19N.1.SL.TZ0.4
Level SL Paper 1 Time zone TZ0
Command term Discuss, Explain Question number 4 Adapted from N/A
4.
[Maximum mark: 25]
19N.1.SL.TZ0.4
(a)

Explain, using a production possibilities curve (PPC) diagram, an increase in the actual output of an economy.

[10]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Answers may include:

  • definitions of production possibilities curve, actual output
  • PPC diagram to show an increase in actual output
  • explanation that an increase in actual output results from increased utilization of resources, showing a movement towards the production possibility curve
  • example of actual growth in specific countries.
(b)

Discuss the view that economic growth always leads to a rise in living standards.

[15]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.

Answers may include:

  • definitions of economic growth, living standards
  • PPC diagram or AD/AS diagram to depict economic growth
  • explanation of why economic growth leads to a rise in living standards because, for example, of rising incomes and employment
  • example of economic growth leading to changes in living standards
  • synthesis or evaluation (discuss).

Discussion may include: consideration that economic growth may not always lead to a rise in living standards because of factors such as environmental costs, the distribution of income, inflation and how the increased use of capital intensive technology may lead to unemployment.

Syllabus sections