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JAMB Economics 2003 Question 3

Question 3

Basic Concepts

Use the production possibility curve of a country represented in the diagram to answer this question. If the country is currently producing at point Y, it can increase production of producer goods by moving to the point

Diagram for this question
  1. A.W
  2. B.X
  3. C.Z
  4. D.V
Show the answer and explanation

Answer: A (W)

Explanation

Use the diagram. W is on the curve and to the right of Y, so the country can produce more producer goods (giving up some consumer goods). Z lies outside the curve and cannot be reached with present resources.