Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram shows the production possibility curves for two economies, X and Y. Which statement about these two economies is correct?

  • ABoth economies always have identical opportunity costs.
  • BBoth economies have the same future growth prospects.
  • CThe opportunity costs are constant in each economy.
  • DThe terms of trade for both countries will be one capital good for one consumer good.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI