AS Paper 1, June 2017Introduction to Markets and Market Failure
AS Paper 1, June 2017, Q1(b)
Which one of the following is the most likely effect of an economy producing more capital goods?
Multiple choice1 mark
Context
The production possibility frontier for an economy is shown in the table below. Capital goods output Consumer goods output Opportunity cost (million units) (million units)
AReduced specialisation of labour
BA shift in the production possibility frontier
CA reduction in marginal utility
DA shift in demand for consumer goods