Basic Economic Problem · 4 question types
Past paper frequency (2018 to 2024)
This topic accounts for approximately 10% of your exam marks.
PPC diagram interpretation appears in roughly half of all Paper 2 sittings; outward shifts and opportunity cost from the diagram are the key mark points.
Topic 1 introduced the three fundamental economic questions: what to produce, how to produce it, for whom to produce it. The PPC shows the what question in pure form.
The PPC does not directly answer the "how" or "for whom" questions; those involve choices about production methods and income distribution, neither of which is shown on the two axes.