Economics 0455 · IGCSE · Opportunity cost

Opportunity cost — practice question

The diagram illustrates the production possibility curve (PPC) for an economy. Which cost can be measured as the economy moves along its PPC from point X to point Y?

  • Athe opportunity cost of producing more capital goods
  • Bthe opportunity cost of producing more consumer goods
  • Cthe social cost of producing more capital goods
  • Dthe social cost of producing more consumer goods

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