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1.1 Economic methodology and the economic problem

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Question 11

Figure 1 shows the production possibility frontier (PPF) for an economy producing agricultural goods and manufactured goods.

Figure 1: Production possibility frontier

PointManufactured goods (units)Agricultural goods (units)
A150500
B250400
C320300

The opportunity cost of producing an additional unit of manufactured goods is

greater at B than C.

greater at B than A.

the same at A, B and C.

zero when 400 units of manufactured goods are produced.

1.1 Economic methodology and the economic problem Questions

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