Economic Environment

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Economic Environment Coursework

1.

(i) An increase in immigration would affect the British production possibility curve as it would force the curve to move to the right. An increase in immigration would lead to an increase in available labour and so Britain would be able to produce more goods.

(ii) A major war would affect the production possibility curve as it would move the curve towards producing more weapons in order to fight. This could also have a reverse affect on the curve as soldiers will be needed in war therefore less labour would be available to produce goods.  

(iii) A decrease in unemployment would affect the production possibility curve as it would move the curve to the right. This is because there would be an increase in production of goods as there has been an increase in the workforce.

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(iv) The discovery of a new oilfield would move the production possibility curve to the right. This is because an increase in oil would improve the country’s GDP, and would lead to an increase in production.

2. Traffic congestion is a big problem to deal with as many people use and need to use their vehicles daily. An obvious suggestion to try and prevent congestion would be to introduce a traffic congestion charge as seen recently in London, and to decrease the price of public transport, (which can be generated by the money obtained from the traffic ...

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