May/June 2026 Paper 13

2026 · 30 questions · 30 parts · 30 marks

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3Production Possibility Curves Growth Trade OffsMedium1 mark
The diagram shows a production possibility curve (PPC) for capital goods and consumer goods.
Diagram, a production possibility curve (PPC) with capital goods on the vertical axis (marked 0, 400, 600, 800, 1000) and consumer goods on the horizontal axis (marked 0, 300, 450, 530, 600). The concave curve runs from (0 consumer goods, 1000 capital goods) down to (600 consumer goods, 0 capital goods), passing through three labelled points: X at (300, 800), Y at (450, 600) and Z at (530, 400).
What is correct about the opportunity cost of one additional capital good?