A-LevelEconomicsBasic Economic Ideas and Resource AllocationFeb/Mar 2020Paper 1 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]
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.
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The correct answer is D. This question tests the candidate's understanding of basic economic ideas and resource allocation within the Economicssyllabus. The examiner's mark scheme requires...
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