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Paper 1 · Opportunity Cost and Scarcity

A concave production possibility curve (PPC) illustrates that

Aincreasing one good's production is only possible through sacrificing production of another good.
Bsome resources are better suited to the production of just one of the two goods.
Cthe economy can choose to produce more of one good without incurring any opportunity cost.
Dthe resources are not sufficient to produce the quantity that may be wanted by the economy.

ZIMSEC Economics 9158/1 Paper 1, June 2018, Q1

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