A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2023 · Q41 Mark
The diagram shows the production possibility curve for wheat and corn. [Figure: 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.
AAs the price of corn falls, more of it is demanded.
BResources used in producing corn are more efficient than in producing wheat.
CThe opportunity cost of producing corn falls when moving from M to N.
DThe opportunity cost of producing corn is constant when moving from M to N.
✓ Correct answer
D: The opportunity cost of producing corn is constant when moving from M to N.
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