Economics (AS & A Level) · May / June 2022 · Paper 31 · Question 2

The diagram shows a production possibility curve (LM) for an economy producing agricultural goods and manufacturing goods. What can be concluded from the diagram?

1. AThe economy must be allocatively efficient at point R.
2. BThe economy is Pareto efficient at point T.
3. CThe economy is productively efficient at point S.
4. DThe opportunity cost is constant as we move from L to M.

As printed in the paper