Economics Multiple Choice Question – 21 July 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The production possibility curve for an economy producing capital and consumer goods are shown below.

Diagram 18

Which production points are currently attainable?

Select ONE answer:

  1. W only
  2. X and Y only
  3. W, X and Y only
  4. W, X, Y and Z

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

  1. W is attainable as it is inside the curve but it is not the only attainable production point.
  2. X and Y are attainable as they are on the curve but W is also attainable.
  3. Correct: W, X and Y are all attainable as they are on or inside the curve – there are sufficient resources to produce these different combinations.
  4. Z is not currently attainable as it is outside the curve indicating there are not sufficient resources to produce the combination.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.