AS Paper 1, June 2023Introduction to Markets and Market Failure
AS Paper 1, June 2023, Q5(b)
The diagram shows the production possibility frontier of an economy. Assuming the economy is at point W, annotate the diagram to show the opportunity cost of producing more consumer goods.
Short answerAnnotate1 mark
Context
During the global health crisis, 11.7 million jobs were furloughed, costing the UK Government £70 billion. This meant people were paid by the government 80% of their wages even though they did not work. Some private sector employers continued to pay the remaining 20 %.
Original diagram required. See the original question paper for the diagram.