Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 2

The diagram shows the production possibility curve (PPC) for an economy that can produce goods and services. If the economy is producing at the boundary of its PPC, which statement is not correct?

1. AThe economy is always producing both goods and services.
2. BThe economy is using all of the available resources.
3. CThe opportunity cost of producing goods is constant.
4. DThere is no unemployment in the economy.

As printed in the paper