A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2016 · Q31 Mark
The diagram shows the production possibility frontier of a desert island economy where the inhabitants live off just two commodities, coconuts and fish.
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 fish is constant as more time is devoted to fishing.
✓ Correct answer
D: The opportunity cost of fish is constant as more time is devoted to fishing.
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