2023 H2 Economics Paper 2 Essay 1: Suggested Answers
How to use these essay answers. The responses below, including the part (a) answer, are structured guides to the requirements of the question, the content, analysis and evaluation a strong answer must cover, rather than full essay prose with a written introduction and conclusion. Use them to see what to include and how to build the argument, then write it up in your own continuous prose, adding your own introduction and conclusion.
This essay uses the production possibility curve to show underutilisation of resources and opportunity cost, then asks whether total production can be increased without environmental damage or other unintended consequences.
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Explain how a production possibility curve can be used to show the concepts of underutilisation of economic resources and opportunity cost. [10]
A production possibility curve (PPC) shows the maximum amount of two different goods an economy can produce when all available resources and technology are used fully and efficiently. It illustrates the trade offs an economy faces because resources are limited. Opportunity cost is the next best alternative forgone, the value of what is given up when one option is chosen over another.
Showing underutilisation of resources. The PPC represents the maximum potential output when all resources are fully and efficiently used. Any point inside the PPC indicates underutilisation, because at such a point the economy is producing less of both goods than it could if all resources were fully employed. A point X inside the curve indicates idle resources such as unemployed labour, underused capital or untapped natural resources. Underutilisation can also be shown by movement: moving from a point X inside the curve towards a point Y on the curve shows a reduction in underutilisation, while moving from the curve to a point inside it, perhaps due to a recession, shows increased underutilisation.
Showing opportunity cost. The PPC shows the maximum combinations of two products, say cars and computers, that an economy can produce with its limited resources. Suppose at one point the economy can produce 5 cars and 10 computers. If it wants one more car, moving to another point on the curve, it might have to reduce computer production to 8. The opportunity cost of the extra car is therefore the 2 computers given up. The slope of the PPC at any point shows the opportunity cost: moving from 5 cars to 6 cars, the economy gives up 2 computers to make that additional car.
Define the PPC and opportunity cost, then use a point inside the curve for underutilisation and a movement along the curve, with numbers, for opportunity cost.
Discuss whether it is possible to increase the total production of goods and services in an economy without resulting in environmental damage or other unintended consequences. [15]
- Define economic growth and frame the question as whether higher output can avoid environmental and other unintended costs.
- Develop the case that increased production tends to cause environmental damage and one named unintended consequence, via the relevant demand side channel.
- Develop the case that growth can be made sustainable, through the supply side and policy mechanisms that raise output without the damage.
- Weigh the two sides and identify the conditions and trade offs that decide the outcome.
- Reach an evaluative conclusion on whether output can rise without environmental damage or unintended consequences.
This part is gated. The full model answer with the worked ad and as analysis and the evaluation, with the diagrams and the full evaluation, is in the ETG TYS Answers book from SAP and is worked live in the TYS Crashcourse. ETG students also get the AI TYS coach that guides them through this exact question. Message the team to find out more.
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Where can I get the full worked answers to the 2023 H2 Economics paper 2 essay 1?
The full model answers, with the diagrams and the higher mark evaluation, are in the ETG TYS Answers book published by SAP and sold at Popular, and are worked live in the TYS Crashcourse. Every ETG student also gets the AI TYS coach on our learning management system, which guides you through how to tackle every essay and every case study question from the last ten years.
Are these the official 2023 A Level Economics answers?
No. SEAB sets and marks the A Level paper. These are suggested answers by Mr Eugene Toh, author of the H1 and H2 A Level Economics TYS answer keys, published by SAP and sold at Popular.
How should I use these suggested essay answers?
Treat them as a guide to the requirements of the question, the content, analysis and evaluation a strong answer must cover, not as full essay prose. Write the essay up in your own continuous prose, with your own introduction and conclusion.
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