1.1 Economic methodology and the economic problem

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Question 35
Easy

An economy is currently operating on its production possibility frontier (PPF), as illustrated in Figure 1 below.

Figure 1

An increase in the production of capital goods will

have no effect on the production of consumer goods because of technological progress.

require a reduction in the production of consumer goods.

increase total current consumption capability because capital goods build capacity.

reduce the opportunity cost of consumer goods.

1.1 Economic methodology and the economic problem Questions

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