Sustainable Development · Paper 1 — Free Economics SL Practice Questions

The below shows the relationship between a country's GDP per capita and its Environmental Performance Index (EPI) score. Point A represents Country Alpha ($\text{GDP per capita} = \text{USD } 5{,}000$, $\text{EPI} = 45$). Point B represents Country Beta ($\text{GDP per capita} = \text{USD } 40{,}000$, $\text{EPI} = 85$). Point C represents Country Gamma ($\text{GDP per capita} = \text{USD } 60{,}000$, $\text{EPI} = 82$).

The production possibilities frontier (PPF) for a small island economy, Atoll, shows fish ($F$) on the horizontal axis ($0$ to $100$ tonnes per year) and tourism services ($T$) on the vertical axis ($0$ to $5000$ visitor-days per year). The PPF is a straight line from $(0,\ 5000)$ to $(100,\ 0)$. Point A is at $(30,\ 3000)$, inside the PPF. Point B is at $(60,\ 2000)$, on the PPF. The maximum sustainable fish catch is $50$ tonnes per year; beyond this, fish stocks collapse.