Economics (AS & A Level) · Feb / March 2023 · Paper 12 · Question 4
9708Production possibility curves
The diagram shows the production possibility curve for wheat and corn. What can be deduced from the diagram?
- AAs the price of corn falls, more of it is demanded.
- BResources used in producing corn are more efficient than in producing wheat.
- CThe opportunity cost of producing corn falls when moving from M to N.
- DThe opportunity cost of producing corn is constant when moving from M to N.
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Correct answer: D. The opportunity cost of producing corn is constant when moving from M to N.
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