Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 3

The diagram shows a production possibility curve for an economy that produces capital goods and consumer goods. Why is the production possibility curve drawn concave to the origin?

1. ACapital goods are a more labour-intensive output than consumer goods.
2. BConsumers always seek to maximise their satisfaction from consumption.
3. CProfit maximisation for firms always ensures efficiency in production.
4. DSome resources are more efficient in production of some goods than others.

As printed in the paper