A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Oct/Nov 2009 · Q11 Mark
The diagram illustrates the production possibility curves for an economy in Year 1 (X1 Y1) and Year 2 (X2 Y2). [Figure]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
AThe cost of production was lower in Year 2 than in Year 1.
BThe full employment level of output was lower in Year 2 than in Year 1.
CThe opportunity cost of production was lower in Year 2 than in Year 1.
DUnemployment rose between Year 1 and Year 2.
✓ Correct answer
B: The full employment level of output was lower in Year 2 than in Year 1.
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