Advanced level 2025 North West regional mock Economics 3

Here are the questions on page 2 of the provided document, “NW ECONS P3 0725 P3_065809.pdf”:

Question 2:

If resources were not limited, no action would be at the expense of any other-all could be undertaken – and the opportunity cost of any single action, the value of the “next best” alternative, would be zero… …The opportunity cost implied by our every choice can be illustrated by the notion of production possibilities.

In order to facilitate such illustration, we assume that all the factors of production in an economy are directed to the production of consumer and producer goods.  

a) Besides opportunity cost, identify and define the other main economic concept implied in the first paragraph.

b) Suggest two characteristics of an economic good.

c) Why is choice necessary in Economics?

d) i) Define a production possibilities curve.

ii) List three other assumptions of production possibilities curve not mentioned in the text.

e) Sketch a production possibilities curve where resources are equally good at producing both types of good.

(5 marks)