Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates the production possibility curve for an economy. Which statement accounts for the curve's shape?

  • AMore efficient workers are drawn away from the production of consumer goods.
  • BResources cannot be switched between producing capital and consumer goods.
  • CThe economy is more efficient at producing capital than consumer goods.
  • DThe opportunity cost of producing capital goods increases the more capital goods are made.

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