Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

A country that is currently operating at point X on its production possibility curve chooses to specialise in the manufacture of cars and import trucks. It discovers that one truck can be imported for four cars. What happens in the domestic market if all the surplus cars are exported?

  • A250 extra trucks
  • B1000 extra trucks
  • C1250 extra trucks
  • D2000 extra trucks

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