A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2011 · Q301 Mark
The diagram shows the production possibility curves of two economies, X and Y. Which statement about the two economies is correct?
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.
ABoth economies always have the identical opportunity costs.
BBoth economies have the same future growth prospects.
CThe opportunity costs are constant in both economies.
DThe two economies can never produce the same combination of products.
✓ Correct answer
C: The opportunity costs are constant in both economies.
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