An economy can produce only two goods at any one time. These are good X and one other good from A, B, C or D. The table shows the outputs of goods A, B, C and D with each output of good X when the economy's resources are fully employed. Which good must be produced with good X to show a production possibility curve with increasing costs?
units
X
0
100
200
300
400
A
0
20
40
60
80
B
110
70
40
20
0
C
120
90
60
30
0
D
140
120
90
50
0

Q: What topic does this question test?

This question tests Basic Economic Ideas and Resource Allocation in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Economics Oct/Nov 2016 examination, Paper 1 Variant 2 (9708_w16_qp_12.pdf).

Question

An economy can produce only two goods at any one time. These are good X and one other good from A, B, C or D. The table shows the outputs of goods A, B, C and D with each output of good X when the economy's resources are fully employed. Which good must be produced with good X to show a production possibility curve with increasing costs?
units
X
0
100
200
300
400
A
0
20
40
60
80
B
110
70
40
20
0
C
120
90
60
30
0
D
140
120
90
50
0

Oracle Prep · Accepted Answer

The correct answer is D: 140
120
90
50
0.

✓ Correct Answer

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