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Pearson Edexcel IAL Economics 1.3.1.4d significance of capital goods for

Practise linking capital goods to productivity and long-run growth by interpreting positions on a production possibility frontier.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • choose the PPF position that gives the greatest future growth potential
  • explain how producing more capital goods can raise productivity and shift the PPF outward

1.3.1.4d - significance of capital goods for productivity and economic growth question 1

[Maximum number: 1]

The diagram shows a production possibility frontier for an economy.

Figure for Question 1.3.1.4d - significance of capital goods for productivity and economic growth question 1 — Edexcel A-Level Economics AS

Which point on the diagram shows the position that will lead to the fastest rate of economic growth?

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