O-LevelEconomicsThe basic economic problem2281/12 · Oct/Nov 2019 · Q21 Mark

The diagram shows two production possibility curves. [Diagram for Question 2] Which statement about the movement from point X to point Y 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.

ADemand for consumer goods has risen.

BThe opportunity cost for producing consumer goods has risen.

CThere has been an increase in productivity in consumer goods production.

DThere has been an inward shift in the production possibility curve.

✓ Correct answer

C: There has been an increase in productivity in consumer goods production.

Oracle Prep sorts past-paper questions by topic, so you can drill The basic economic problem and see which topics are most likely to come up next.

Topic: The basic economic problem, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2019 Paper 1 Variant 2, question 2.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content