Economics 9708 · AS & A Level · Scarcity, choice and opportunity cost

Scarcity, choice and opportunity cost — practice question

The diagrams illustrate how a country’s production possibility curve changes from Year 1 to Year 2. What can be deduced from the diagrams?

  • AFuture growth prospects have been harmed.
  • BThe level of unemployment has fallen.
  • CThe opportunity cost of consumer goods has risen.
  • DThe proportionate growth in production is greater in consumer goods.

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