Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The sets of output for goods X and Y listed in the table could all be produced with the country’s current resources being used at full capacity. Which statement correctly describes the opportunity cost of good Y in terms of good X?

  • AIt decreases as the output of Y increases.
  • BIt is always below 1Y = 1X.
  • CIt is constant throughout the range of output shown.
  • DIt is never above 1Y = 2X.

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