Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 2
9708Production possibility curves
The diagram shows the production possibility curves of two countries, X and Y. What can be concluded from the diagram?
- ABoth countries have decreasing opportunity cost in the production of consumer goods.
- BBoth countries should produce 40 units of capital goods and 20 units of consumer goods.
- CCountry Y has constant opportunity cost in the production of consumer goods.
- DCountry Y is producing more consumer goods than country X.
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Correct answer: C. Country Y has constant opportunity cost in the production of consumer goods.
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