What is the opportunity cost to a person of going to university? [2] What is the difference between capital and land? [2]

Analyse, using a production possibility diagram, the effect on an economy’s output when there is a change from full employment to unemployment. [6]

Using a production possibility curve diagram, analyse the impact of an increase in resources on an economy. [5]

What is meant by the ‘economic problem’? [2]

Define ‘demand’. [2]

Explain three likely causes of an increase in demand for bicycles. [6]

What is the difference between labour and enterprise? [4]

Using a production possibility curve diagram, analyse the effect of a decrease in the supply of labour and enterprise on an economy. [5]

Explain why the economic problem can never be solved. [4]