The table below shows the maximum potential production possibilities for a manufacturing plant producing Smartphones and Laptops.
| Output of Smartphones (thousands) | Output of Laptops (thousands) |
|---|---|
| 0 | 120 |
| 2 | 110 |
| 4 | 90 |
| 6 | 60 |
| 8 | 20 |
It can be concluded from the table that, as production of Smartphones increases, the opportunity cost of such production, in terms of Laptops:
remains constant.
falls.
rises.
rises and then falls.
123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.