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Unit 1 · Basic economic ideas and resource allocation

Unit 1 essay review checklist

Every piece of knowledge, every analysis chain and every evaluation point that the 60 Unit 1 Paper 2 essay questions in the bank (2015–2025) ask for. Tick an item only when you can explain it from memory, out loud or on paper, without looking.

清单条目使用英文，也就是考试作答所用的语言。标题、按钮和说明仍为中文。

0 / 140 ticked

How to use this checklist
  1. Cover the page and try each item out loud or on paper. Tick it only when you got it right without looking.
  2. Items with a diagram: draw it yourself first, then open it to compare.
  3. Use the 'Asked in' links to open the real questions that need an item, and write one of them.
  4. Work on the items you cannot tick first. 'Hide ticked' shows only those.
  5. Before a test, print the checklist and go through it again on paper.

1.1Scarcity, choice and opportunity cost

Chapter 1 notes → · No essay in the bank is set on this section ·

No essay in the bank targets 1.1 directly. You still need it: the PPC essays in 1.5 ask you to show scarcity, choice and opportunity cost, the economic-systems essays in 1.4 judge each system by how it answers the three basic questions, and opportunity cost is an evaluation point in almost every policy essay.

Knowledge and understanding (AO1)

Analysis: the chains (AO2)

1.2Economic methodology

Chapter 2 notes → · No essay in the bank is set on this section ·

No essay in the bank targets 1.2 directly. You still need it: many Unit 1 questions ask what a government 'should' do, which needs a value judgement you can name, the PPC is a model whose assumptions you can question, and several essays turn on the difference between the short run and the long run.

Knowledge and understanding (AO1)

Evaluation (AO3)

1.3Factors of production

Chapter 3 notes → · 3 essays set on this section ·

The 3 past-paper questions on this section
  1. 9708/22/M/J/23 (b) Entrepreneurs are vital in an economy to achieve long run economic growth. Assess whether encouraging entrepreneurship or increasing another of the factors of production will be a more effective way to achieve long-run economic growth. [12]
  2. 9708/21/O/N/18 a) Explain how capital goods contribute to production in a modern economy and how capital is rewarded. [8]
  3. 9708/23/M/J/18 In 2015, it was reported that the global demand for chocolate was projected to increase but it was unlikely that the global supply of cocoa beans, required to produce chocolate, would increase. a) State and explain two factors of production needed for the manufacture of chocolate. Explain the benefits of specialisation in the manufacture of chocolate. [8]

Knowledge and understanding (AO1)

Analysis: the chains (AO2)

  • Asked in 21/O/N/18 (a) 22/M/J/23 (b) 22/O/N/25 (b)
  • Asked in 23/M/J/18 21/O/N/18 (a)
  • Asked in 23/M/J/18
  • Asked in 22/M/J/23 (b) 21/O/N/18 (b) 23/O/N/15 (b)
    Also asked in · Unit 4 22/O/N/20 (a)
    Also asked in · Unit 5 21/O/N/22 (b)

Evaluation (AO3)

  • Asked in 22/M/J/23 (b) 21/O/N/18 (b) 22/O/N/25 (b)
  • Asked in 22/M/J/23 (b) 21/O/N/18 (b) 22/O/N/25 (b)
  • Asked in 22/M/J/23 (b) 21/O/N/18 (b)
    Also asked in · Unit 5 21/O/N/22 (b)

1.4Resource allocation in different economic systems

Chapter 4 notes → · 15 essays set on this section ·

The 15 past-paper questions on this section
  1. 9708/22/M/J/25 (b) Assess the extent to which a government can ensure that both merit and demerit goods are produced in desirable quantities. [12]
  2. 9708/22/O/N/24 (b) Assess whether a market economy is always the best economic system to effectively answer the three basic questions of resource allocation. [12]
  3. 9708/21/O/N/24 (b) Assess whether consumers always benefit when the government of a mixed economy reduces the role of the market mechanism in allocating resources. [12]
  4. 9708/22/O/N/23 b) The provision of merit and demerit goods differs from the provision of other private goods. Assess the view that the consequences of imperfect information are more serious in a market economy than in a mixed economy. [12]
  5. 9708/22/F/M/23 (b) Assess whether all market economies should become mixed economies. [12]
  6. 9708/22/F/M/22 (b) Discuss whether the transition from a planned economy to a market economy will always benefit consumers. [12]
  7. 9708/22/M/J/22 (b) Discuss the disadvantages of a planned economy and consider whether the transition to an economy in which many resources are allocated by market forces is likely to be of overall benefit. [12]
  8. 9708/21/M/J/22 When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises. (b) Discuss the advantages of a mixed economy and whether it is always preferable to a planned economy. [12]
  9. 9708/23/O/N/21 (a) Explain how the fundamental economic problem is addressed in a planned economy and in a market economy. [8]
  10. 9708/21/O/N/21 (b) Discuss whether the advantages of a transition from a planned economy to a market economy always outweigh the disadvantages. [12]
  11. 9708/21/O/N/20 (b) Discuss why in most mixed economies, resources are mainly allocated using market forces and the price mechanism. [12]
  12. 9708/22/M/J/20 (b) Discuss whether the transition of an economy from one that is centrally planned to one in which resources are allocated through the free market is likely to be of overall benefit to the citizens of that economy. [12]
  13. 9708/22/M/J/18 (a) Explain the different ways in which resources are allocated in a market economy and in a mixed economy. [8]
  14. 9708/22/M/J/17 (b) Discuss two methods of increasing the provision of merit goods in a mixed economy. Consider which is more likely to be effective. [12]
  15. 9708/23/O/N/15 b) Discuss the way in which resources are allocated in planned economies and free market economies. Consider which type of economic system is likely to have the more beneficial outcome. [12]

Knowledge and understanding (AO1)

Analysis: the chains (AO2)

Evaluation (AO3)

1.5Production possibility curves

Chapter 5 notes → · 18 essays set on this section ·

The 18 past-paper questions on this section
  1. 9708/21/M/J/25 (b) Assess whether a shift to the right of a PPC is only caused by an increase in the quantity of resources. [12]
  2. 9708/22/F/M/25 (a) With the help of a production possibility curve (PPC) diagram, explain the term scarcity and choice and consider the extent to which every choice has an equal opportunity costs. [8]
  3. 9708/22/O/N/25 (a) With the help of a diagram, explain the difference between a movement along a production possibility curve (PPC) and a shift of this curve and consider whether a decision to produce more of one product will always incur an equal opportunity cost. [8]
  4. 9708/22/O/N/25 (b) Assess the extent to which it is always necessary to increase the size of the labour factor of production in order to cause an outward shift of the production possibility curve. [12]
  5. 9708/22/O/N/24 (a) With the help of a production possibility curve (PPC) diagram(s), explain the difference between constant and increasing opportunity costs and consider how choices in deciding which type of goods to produce in the short run may influence future economic growth. [8]
  6. 9708/21/O/N/24 (a) With the help of a diagram, explain the significance of a position within a market economy’s production possibility curve (PPC) and consider whether such a position is likely to be permanent. [8]
  7. 9708/23/M/J/24 (a) Use a production possibility curve (PPC) diagram to explain how a government in a mixed economy might allocate more resources to consumption and fewer resources to investment and consider a limitation of this approach to resource allocation. [8]
  8. 9708/21/M/J/23 (a) With the help of a diagram, explain the difference between the causes of a movement along, and a shift of, a production possibility curve (PPC) and consider which is likely to have the most immediate impact on an economy. [8]
  9. 9708/22/O/N/22 (a) Explain how a production possibility curve can be used to demonstrate scarcity, choice and opportunity cost. [8]
  10. 9708/21/O/N/22 (a) Explain, with the use of a diagram(s), how the production possibility curve of an economy could be affected by a decrease in the quantity of labour available, but an increase in its quality. [8]
  11. 9708/22/F/M/22 (a) Explain with the help of a production possibility curve diagram(s) how a decision to re-allocate resources in an economy to produce more capital goods and fewer consumer goods would affect consumers in both the short run and the long run. [8]
  12. 9708/22/O/N/21 (a) Use a diagram(s) to explain how a production possibility curve can be used to show opportunity cost and why such a curve is usually drawn with increasing opportunity costs. [8]
  13. 9708/21/O/N/21 (a) With the aid of a diagram, compare what happens to an economy’s resources to cause a movement along its production possibility curve with what happens to an economy’s resources to cause a shift of its production possibility curve. [8]
  14. 9708/22/M/J/20 a) Use a production possibility curve diagram(s) to distinguish between the growth of an economy and a reduction in the number of unused resources in an economy and explain one reason that might cause each to occur. [8]
  15. 9708/21/M/J/20 (a) Explain, with the aid of a production possibility curve (PPC) diagram, why scarcity makes choice inevitable for firms and how each choice has an opportunity cost. [8]
  16. 9708/21/M/J/19 (a) Explain, with the help of diagrams, how (i) constant and (ii) increasing opportunity costs determine the shape of an economy’s production possibility curve. [8]
  17. 9708/22/F/M/19 (a) Show how a production possibility curve can be used to explain scarcity, choice and opportunity cost. [8]
  18. 9708/21/O/N/18 (b) Discuss whether enterprise is crucial to the outward shift of the production possibility curve in a mixed economy. [12]

Knowledge and understanding (AO1)

Analysis: the chains (AO2)

Evaluation (AO3)

  • Asked in 22/F/M/25 (a) 22/O/N/25 (a) 22/O/N/24 (a) 22/O/N/21 (a)
    1 more21/M/J/19 (a)
  • Asked in 21/O/N/24 (a) 22/M/J/20 (a) 22/M/J/22 (a)
  • Asked in 21/M/J/23 (a)
  • Asked in 21/M/J/25 (b) 22/O/N/25 (b) 21/O/N/18 (b) 22/M/J/23 (b)
    1 more21/O/N/22 (a)
  • Asked in 22/O/N/25 (b) 22/M/J/23 (b) 21/O/N/22 (a) 21/M/J/25 (b)
  • Asked in 23/M/J/24 (a)
  • Asked in 22/O/N/24 (a) 22/F/M/22 (a) 23/O/N/15 (b) 23/M/J/24 (a)
  • Asked in 21/O/N/18 (b) 22/M/J/23 (b) 22/O/N/25 (b)

1.6Classification of goods and services

Chapter 6 notes → · 24 essays set on this section ·

The 24 past-paper questions on this section
  1. 9708/23/M/J/25 (a) Explain what is meant by a merit good and why governments provide merit goods such as healthcare free of charge and consider why such provision may not always be successful. [8]
  2. 9708/21/O/N/25 (a) With the help of examples, explain the nature and characteristics of free goods and private goods (economic goods) and consider the significance of the distinction between these two types of good. [8]
  3. 9708/21/O/N/25 (b) Assess whether education should be classified as a public good or a merit good. [12]
  4. 9708/23/O/N/24 a) With the aid of examples, explain the characteristics of public goods and free goods and consider whether free-of-charge vaccinations offered by a government should be classified as a free good. [8]
  5. 9708/21/M/J/24 a) With the use of examples, explain the difference between public goods and merit goods and consider whether markets will always provide enough of both goods. [8]
  6. 9708/23/O/N/23 a) Explain why the provision of bus and local rail (mass transit) services in cities is classified as a private good not a public good and consider why such services might only be provided by the private sector. [8]
  7. 9708/21/M/J/23 (b) Assess whether education should be classified as a public good rather than classified as a merit good. [12]
  8. 9708/22/O/N/23 (a) With the help of examples, explain the difference between free goods and public goods and consider the view that public goods can never be provided in a market economy. [8]
  9. 9708/23/O/N/22 a) Explain why demerit goods are over-consumed and merit goods are under-consumed. [8]
  10. 9708/23/M/J/22 b) Discuss why merit goods are provided by both the private sector and the public sector. [12]
  11. 9708/22/M/J/22 a) With the help of a production possibility curve diagram(s) compare growth in the productive capacity of an economy and growth that results from a reduction in the quantity of unused resources in an economy. Explain one reason that might cause each to occur. [8]
  12. 9708/21/M/J/22 When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises. a) Explain, using examples, why merit goods are classified as private goods rather than public goods. [8]
  13. 9708/23/O/N/21 When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises. b) Discuss the view that in a mixed economy the only role of government should be to provide public goods and the supply of merit goods should be left to the private sector. [12]
  14. 9708/22/M/J/21 In 2018 the UK government, concerned about the rise in obesity, particularly amongst young people, imposed a tax on producers of sugar-sweetened drinks. a) State what is meant by a demerit good, and with the help of a diagram(s) explain how a tax on producers can improve the allocation of resources in the market for sugar-sweetened drinks. [8]
  15. 9708/21/M/J/21 In 2018 the UK government, concerned about the rise in obesity, particularly amongst young people, imposed a tax on producers of sugar-sweetened drinks. a) Explain whether private goods, free goods and public goods will all be sold in a free market economy. [8]
  16. 9708/21/O/N/20 a) Explain, with the help of examples, how imperfect information among consumers affects their consumption of merit goods and demerit goods. [8]
  17. 9708/21/M/J/20 b) Discuss the view that the only goods a government should produce are public goods. [12]
  18. 9708/22/F/M/20 a) The government raises taxes to provide a toll road bridge and streetlights in a country. Explain how an economist would classify each of these provisions. [8]
  19. 9708/22/O/N/19 b) ‘Since the demand for a demerit good such as cigarettes is price inelastic, a tax on the product is a waste of time. What is needed is better awareness amongst consumers of the negative effects of smoking cigarettes.’ Discuss this view. [12]
  20. 9708/21/O/N/19 b) Discuss, with the use of examples, whether a government should directly provide certain goods and services in an economy. [12]
  21. 9708/23/M/J/19 b) Discuss whether merit goods should always be subsidised and demerit goods always taxed. [12]
  22. 9708/23/O/N/18 a) Using suitable examples, explain why some goods cannot be provided as private goods. [8]
  23. 9708/22/O/N/18 a) Explain the features of a public good. Consider whether a motorway (highway) provides an example of a public good. [8]
  24. 9708/21/M/J/18 b) Discuss whether merit goods and demerit goods are best provided by a market economy. [12]

Knowledge and understanding (AO1)

Analysis: the chains (AO2)

Evaluation (AO3)

Evaluation toolkit and exam technique

These work in every section. Most evaluation marks in Unit 1 essays come from one of these moves applied to the question in front of you, and the exam technique is what Paper 2's two-part essays reward.

Evaluation (AO3)

Exam technique

Model chains and evaluation points for each item are being added. Until then, check yourself against the chapter notes and the mark scheme for each question.

This is a free, unofficial Cambridge 9708 Economics revision resource and is not affiliated with Cambridge Assessment International Education.