Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 3

The diagram shows an economy's production possibility curve. The economy produces combinations of goods and services using all available resources. What does the production possibility curve indicate for goods and services?

1. Aconstant returns to scale in the production of both goods and services
2. Bdiminishing returns to scale in the production of both goods and services
3. Cincreasing returns to scale in the production of both goods and services
4. Dinfinite returns to scale in the production of both goods and services

As printed in the paper