Country Z operates with a production possibility curve (PPC). Currently, output is at combination 1. Which movement has zero opportunity cost in terms of the goods produced?
A.
1 to 2
B.
1 to 3
C.
2 to 3
D.
3 to 4
Exam No:9708_w23_qp_11 Year:2023 Question No:2
Answer:
B
Knowledge points:
1.5.1 nature and meaning of a production possibility curve (PPC)
1.5.2 shape of the PPC: constant and increasing opportunity costs
1.5.3 causes and consequences of shifts in a PPC
1.5.4 significance of a position within a PPC
Solution:
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