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1.1 Economic methodology and the economic problem

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Question 83

An economy operates on its production possibility frontier (PPF) as shown in the diagram below.

Production Possibility Frontier showing Capital Goods (Y) and Consumer Goods (X)

The opportunity cost of increasing the production of capital goods from Y1 Y_1\,Y1​ to Y2 Y_2\,Y2​ is represented by:

Y2−Y1Y_2 - Y_1Y2​−Y1​

X1−X2X_1 - X_2X1​−X2​

X2−X1X_2 - X_1X2​−X1​

X2−X1Y2−Y1\frac{X_2 - X_1}{Y_2 - Y_1}Y2​−Y1​X2​−X1​​

1.1 Economic methodology and the economic problem Questions

  1. A Level
  2. /Economics
  3. /1.1 Economic methodology and the economic problem