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Edexcel IAL Economics 1.3.1.4a production possibility frontier diagrams

Practise PPF interpretation by reading efficient, inefficient and unobtainable output points, then calculating opportunity cost between labelled points.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • Read a PPF diagram to judge efficient, inefficient or unobtainable output combinations.
  • Calculate opportunity cost by comparing consumer and capital goods at labelled PPF points.

1.3.1.4a - use of production possibility frontiers to depict: possibility • the maximum productive question 1

[Maximum number: 1]

The diagram shows the production possibility frontier for an economy currently operating at point X .

Figure for Question 1.3.1.4a - use of production possibility frontiers to depict: possibility • the maximum productive question 1 — Edexcel A-Level Economics AS

Which one of the following can be deduced from the diagram?

A

Point Z is unobtainable when using all available resources

B

Point Y would generate higher economic growth than point X

C

The movement from point X to point Y has an opportunity cost of 50 capital goods

D

The movement from point X to point Y has an opportunity cost of 25 consumer goods

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