Which one of the following is the most likely long-run consequence of a country reallocating its scarce resources from the production of consumer goods to capital goods?
A contraction along the existing demand curve for public goods
An outward shift of the production possibility frontier in the future
An immediate increase in the current standard of living
A permanent decrease in productive efficiency
85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.