Day: July 21, 2019

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

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.

 

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