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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 3

9708Production possibility curves

The diagram shows a production possibility curve (PPC) for capital goods and consumer goods. What is correct about the opportunity cost of one additional capital good?

  1. AIt is greater at X than Y.
  2. BIt is greater at Z than Y.
  3. CIt is the same at X, Y and Z.
  4. DIt is zero when 600 units of consumer goods are produced.

As printed in the paper

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Correct answer: A. It is greater at X than Y.

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