,
, 3
Do not write
outside the
0 2 Figure 1 shows a production possibility diagram for an economy where goods and box
services are produced in the private and public sectors. The economy is currently
producing at point Y.
Figure 1
Following a change in government, it is decided that the output of public sector goods and
services should be increased by VW.
What is the opportunity cost, in terms of private sector output, of this reallocation of
resources?
[1 mark]
A OS
B OT
C ST
D YZ
Turn over for the next question
Turn over ►
*03*
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IB/M/Jun25/7136/3
, 4
Do not write
outside the
0 3 Which one of the following best describes how a social scientist would develop an box
economic theory?
[1 mark]
A Apply logic to make connections between normative and positive
economic concepts
B Create a hypothesis and test whether it can predict the behaviour of
economic agents
C Develop a number of policies and test whether they are successful in the
real world
D Form a set of value judgements and test whether they are supported by
statistical data
*04*
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IB/M/Jun25/7136/3
, 3
Do not write
outside the
0 2 Figure 1 shows a production possibility diagram for an economy where goods and box
services are produced in the private and public sectors. The economy is currently
producing at point Y.
Figure 1
Following a change in government, it is decided that the output of public sector goods and
services should be increased by VW.
What is the opportunity cost, in terms of private sector output, of this reallocation of
resources?
[1 mark]
A OS
B OT
C ST
D YZ
Turn over for the next question
Turn over ►
*03*
lock in and max out: tyrionpapers.com for more: tyrionpapers.com
IB/M/Jun25/7136/3
, 4
Do not write
outside the
0 3 Which one of the following best describes how a social scientist would develop an box
economic theory?
[1 mark]
A Apply logic to make connections between normative and positive
economic concepts
B Create a hypothesis and test whether it can predict the behaviour of
economic agents
C Develop a number of policies and test whether they are successful in the
real world
D Form a set of value judgements and test whether they are supported by
statistical data
*04*
lock in and max out: tyrionpapers.com for more: tyrionpapers.com
IB/M/Jun25/7136/3
