A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2020 · Q11 Mark
The diagram shows the production possibility curve of a desert island economy where the inhabitants produce just two commodities, coconuts and fish. [Figure 1.1]
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.
ACoconuts and fish are perfect complements.
BCoconuts and fish are perfect substitutes.
CThe inhabitants consume more fish than coconuts.
DThe opportunity cost of increasing fish production is constant.
✓ Correct answer
D: The opportunity cost of increasing fish production is constant.
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