Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram shows that a country is able to make manufactured goods and agricultural products. Using this information, which statement is certainly correct?

  • AIf the country produces at Q it has unused or inefficiently used resources.
  • BThe country should produce at T instead of at Q.
  • CThe country would be better off producing at R than S.
  • DThe monetary costs are the same to produce at V as they are to produce at R.

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