A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2018 · Q31 Mark
The diagram shows a production possibility curve for an economy that produces capital goods and consumer goods. [Figure 3.1] Why is the production possibility curve drawn concave to the origin?
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.
ACapital goods are a more labour intensive output than consumer goods.
BConsumers always seek to maximise their satisfaction from consumption.
CProfit maximisation for firms always ensures efficiency in production.
DSome resources are more efficient in production of some goods than others.
✓ Correct answer
D: Some resources are more efficient in production of some goods than others.
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