Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

The diagram presents the production possibility curve (PPC) for an economy that produces consumer goods and capital goods. At present, the economy is producing OM consumer goods and OG capital goods. It then chooses to expand capital-goods production to OH. What is the opportunity cost of this choice measured in consumer goods?

  • AJG
  • BML
  • CMN
  • DNL

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