A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2018 · Q21 Mark

YX is an economy's production possibility curve (PPC). The equation of the curve is qY = 1000 – 2qX. [Figure showing a downward sloping straight line PPC from (0, 1000) to (500, 0) for output of good Y (qY) and good X (qX)] What is the opportunity cost of producing one extra unit of good X?

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A½ unit of good Y

B2 units of good Y

C500 units of good Y

D1000 units of good Y

✓ Correct answer

B: 2 units of good Y

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Topic: Basic economic ideas and resource allocation, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2018 Paper 1 Variant 2, question 2.

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YX is an economy's production possibility curve (PPC). The equation of the curve is qY = 1000 – 2qX. [Figure showing a downward sloping straight line PPC from (0, 1000) to (500, 0) for output of good Y (qY) and good X (qX)] What is the opportunity cost of producing one extra unit of good X?

✓ Correct answer

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