1.1 Economic methodology and the economic problem

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Question 22

The production possibility boundary below shows the possible combinations of Capital Goods and Consumer Goods that an economy can produce.

Production Possibility Boundary

The economy is currently producing $OX\,$ units of Capital Goods and $OS\,$ units of Consumer Goods. If it decides to increase its production of Capital Goods to $O Y$ , the opportunity cost in terms of Consumer Goods would be

$S T$

$O T$

$X Y$

$O S$

1.1 Economic methodology and the economic problem Questions

A Level
Economics
1.1 Economic methodology and the economic problem

A Level
Economics AQA
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