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A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Oct/Nov 2011 · Q21 Mark

The curve PP in the diagram is the production possibility curve for a country producing goods X and Y. The production of X is more labour intensive than the production of Y. [Figure showing a production possibility curve PP and other curves RR, QQ, SS, TT, with good Y on vertical axis and good X on horizontal axis] The working hours of the labour force are reduced by law. Which curve could be the country's new production possibility curve?

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.

ATT
BSS
CQQ
DRR

✓ Correct answer

B: SS

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About this question

Topic
Basic economic ideas and resource allocation, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2011 Paper 1 Variant 2, question 2.

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