Economics 9708 · AS & A Level
Production possibility curves
100 practice questions on Production possibility curves, with worked solutions and instant marking.
The diagram illustrates the production possibility frontier for a desert island economy in which the inhabitants depend on only two commodities, coconuts and fish. What accounts for the shape of the production possibility frontier?
Feb/March 2016
The diagram illustrates a production possibility curve for an economy operating at point P. Which amount of X must be sacrificed to make the quantity of Y shown?
Feb/March 2017
A farmer can produce three crops, X, Y and Z, on his land. He decides to cultivate no more than two crops in any one year. The table shows six possible combinations of output units for the three crops. What is the opportunity cost of 1 unit of X?
Feb/March 2018
Why does the production possibility curve have a concave shape towards the origin?
Feb/March 2018
Explain how governments experience rising opportunity cost when making decisions. Support your response with a production possibility curve diagram.
Feb/March 2018
The diagram illustrates a production possibility curve for a farmer. The initial position is X. If the farmer reallocates some of his land from pear production to apple production, which point shows his new position?
Feb/March 2019
Show how a production possibility curve can be used to illustrate scarcity, choice and opportunity cost.
Feb/March 2019
The diagram illustrates a production possibility frontier, PPF1. The economy starts at point X. If actual economic growth is achieved, but potential growth is not, where would the economy end up?
Feb/March 2019
The diagram illustrates the production possibility curve for a desert island economy in which the inhabitants make only two goods, coconuts and fish. What accounts for the shape of the production possibility curve?
Feb/March 2020
The diagram presents two production possibility curves for an economy. Which combination of movements correctly shows these changes in production?
Feb/March 2021
Use production possibility curve (PPC) diagrams to illustrate the effect on an economy’s output of
Feb/March 2021
A production possibility curve illustrates the combinations of output that an economy can produce when it uses all of its available resources. At which points on the diagram are all available resources being used?
Feb/March 2022
The production possibility curves (PPCs) illustrate the production capacity of four economies for wheat and rice. Which PPC has the smallest opportunity cost of producing wheat?
Feb/March 2022
Explain with the help of a production possibility curve diagram(s) how a decision to re-allocate resources in an economy to produce more capital goods and fewer consumer goods would affect consumers in both the short run and the long run.
Feb/March 2022
The diagram illustrates the production possibility curve for wheat and corn. What may be inferred from the diagram?
Feb/March 2023
Why is there a production possibility curve for every economy?
Feb/March 2024
Compare the change in projected real GDP growth of Japan with that in the US between 2022 and 2025, using the information in Table 1.1.
Feb/March 2024
The diagram illustrates the production possibilities for barley and wheat in countries Q and R. What conclusion can be drawn?
Feb/March 2025
The production possibility curve represents the highest possible output of apples and pears that an economy can achieve with its existing resources. Which pair of positions shows one efficient outcome and one inefficient outcome?
Feb/March 2025
The diagram illustrates an economy’s production possibility curve. What brings about a movement from point X to point Y?
Feb/March 2025
In what way does Fig. 1 support the view that the BBC creates more value than viewers pay?
May/June 2007
An economy is able to make agricultural and industrial goods. Explain what may happen to its production possibility curve if the productivity of agricultural workers rises.
May/June 2009
The diagram illustrates production possibility curves for two countries, X and Y. What can be inferred from it?
May/June 2010
The diagrams illustrate how a country’s production possibility curve changes from Year 1 to Year 2. What can be deduced from the diagrams?
May/June 2010
The diagrams illustrate how a country’s production possibility curve changes from Year 1 to Year 2. What may be inferred from the diagrams?
May/June 2010
The diagram presents production possibility curves for two countries, X and Y. What can be inferred from the diagram?
May/June 2010
The diagram illustrates production possibility curves for the two countries, X and Y. What may be deduced from the diagram?
May/June 2010
The diagrams illustrate the change in a country’s production possibility curve from Year 1 to Year 2. What can be deduced from the diagrams?
May/June 2010
Explain how a country’s production possibility curve is determined by its factors of production.
May/June 2010
The diagram illustrates the production possibility curves of two economies, X and Y. Which statement concerning the two economies is correct?
May/June 2011
Each diagram presents the production possibility curves for two economies, X and Y, that make food and clothes. In which diagram would both economies gain by specialising in the good for which they have comparative advantage and trading at an exchange rate of 1 unit of clothes to 1.5 units of food?
May/June 2011
The diagram illustrates the production possibility curves for two economies, X and Y. Which statement about these two economies is correct?
May/June 2011
In each diagram, the production possibility curves for two economies, X and Y, are shown; they produce food and clothes. In which diagram would both economies gain if they specialised in the good for which they have comparative advantage and then traded at an exchange rate of 1 unit of clothes to 1.5 units of food?
May/June 2011
The diagram illustrates the production possibility curves for two economies, X and Y. Which statement about these two economies is correct?
May/June 2011
In the diagram, LM represents an economy’s production possibility curve. Which statement is correct?
May/June 2011
From the diagram, LM represents an economy’s production possibility curve. Which statement is correct?
May/June 2011
In the diagram, LM shows an economy’s production possibility curve. Which statement is correct?
May/June 2011
In the diagram, JK is an economy’s production possibility curve. What might make the curve move to GH?
May/June 2012
The diagram illustrates the production possibility curves of two countries, X and Y. A fall in productivity shifts country X’s production possibility curve from X1 to X2. Which statement is correct?
May/June 2012
What is the opportunity cost for an economy at full employment of raising capital investment?
May/June 2012
In the diagram, JK represents an economy’s production possibility curve. What might make the curve move to GH?
May/June 2012
The diagram illustrates the production possibility curves for countries X and Y. If productivity falls, country X’s production possibility curve shifts from X1 to X2. Which statement is correct?
May/June 2012
In the diagram, curve JK shows a country’s production possibility curve. What might make the curve move to LM?
May/June 2012
What opportunity cost does a fully employed economy face when capital investment is increased?
May/June 2012
Explain the effect of a loss of confidence in money on an economy’s production possibility curve.
May/June 2012
Explain why every type of economic system gains from the existence and use of money.
May/June 2012
The diagram illustrates the production possibility curve (PPC) for an economy producing goods and services. What could bring about the shift of the PPC from XY1 to XY2?
May/June 2013
The diagram illustrates two production possibility curves (EF and GH), shown before and after technological progress has occurred. Once technological progress has occurred, what is the opportunity cost, in capital goods, of producing OX consumer goods?
May/June 2013
From the diagram, JK represents the country’s production possibility curve. LK is the trading possibility curve, showing the combinations of good X and good Y it can obtain after specialising in the product for which it has comparative advantage and then trading that product. The country consumes OR of good X and OT of good Y. What quantities of goods X and Y does it produce?
May/June 2013
The diagram illustrates a production possibility curve for an economy that makes only two goods, X and Y. The economy produces 400 of good Y and operates on its production possibility curve. Which quantity of good X is forgone?
May/June 2013
Using a diagram, explain the ways in which a production possibility curve can demonstrate opportunity cost and economic growth.
May/June 2013
The diagram shows the production possibility curve for an economy in Year 1 (X1 Y1) and Year 2 (X2 Y2). What conclusion can be drawn from the diagram?
May/June 2014
A country was positioned at point P on its production possibility curve. After the threat of invasion, it began preparing for war. The war then damaged the country’s infrastructure. Which changes on the production possibility curve diagram would be most likely to match these events?
May/June 2014
The production possibility curve indicates island J’s capacity to produce fish and fruit. It specialises completely in fish, where it has a comparative advantage, and exchanges fish for fruit with island K. Consequently, island J raises its consumption from 80 tonnes of fish and 60 tonnes of fruit, point X, to 100 tonnes of fish and 100 tonnes of fruit, point Y. What was island J’s exchange rate of fish for fruit?
May/June 2014
A country is operating at full capacity to produce electrical goods and medicines. A new innovation makes it possible for the country to manufacture a new medicine that then becomes highly demanded. How would this be shown by its production possibility curves?
May/June 2014
In the diagram, LM represents an economy’s production possibility curve. Which statement is correct?
May/June 2014
The diagram shows LM as an economy’s production possibility curve. Which statement must be correct?
May/June 2014
In the diagram, LM represents an economy’s production possibility curve. Which statement is correct?
May/June 2014
A group of people are stranded on a tropical island and divide their time between collecting coconuts and catching fish. Every person has the same productivity when gathering coconuts or fishing. Which diagram shows the production possibility curve for this community?
May/June 2015
The table below shows the production possibilities for two countries, with each country using the same amount of resources to produce food and drink each day. What conclusion can be drawn from these figures?
May/June 2015
The diagram illustrates the production possibility curve for a desert island economy in which the inhabitants depend only on two commodities: coconuts and fish. What accounts for the shape of the production possibility curve?
May/June 2015
In a pottery workshop, three women each split their time equally among three products. The table gives the number of units produced of each item. Afterwards, division of labour is adopted and each woman produces only the product in which she has absolute advantage. What is the increase in total output?
May/June 2015
The diagram illustrates how a country’s production possibility curve changes from PQ to PR. What rises as a result of the move from PQ to PR?
May/June 2015
The diagram illustrates a production possibility curve for an economy. If the production possibility curve is assumed to stay the same, what is the most probable explanation for the shift from point X to point Y?
May/June 2015
Use production possibility curves to contrast Brazil’s economy in 2013 with its economy in 2003.
May/June 2015
Discuss the factors that should be taken into account by the Malawian Government when deciding whether it should develop its tourist industry and let its tobacco industry decline.
May/June 2015
An economy redistributes resources and moves along its production possibility frontier. It raises the output of necessity goods and lowers the output of luxury goods. The marginal utility enjoyed by the consumers of the extra necessity goods produced is higher than the marginal utility enjoyed by the consumers of the luxury goods that are no longer produced. What effect does this have on the economic efficiency of the economy?
May/June 2015
The diagram illustrates a country’s production possibility curve together with several alternative production points. Which change in the country’s output would be most likely to cause a decrease in potential growth?
May/June 2015
The diagram illustrates the production possibility curves for two countries, X and Y. If productivity falls, country X’s production possibility curve shifts from X1 to X2. Which statement is correct?
May/June 2016
The diagram shows the production possibility curves for two economies, X and Y. Which statement about these two economies is correct?
May/June 2016
A production possibility curve illustrates labour-intensive farming output alongside capital-intensive manufacturing output. Which of the following would not lead to a shift in this curve?
May/June 2016
The diagram illustrates production possibility curves for two countries, X and Y. What can be deduced from this diagram?
May/June 2016
The movement from WX to YZ on a country’s production possibility curve is illustrated. What might have led to this change?
May/June 2016
The diagram illustrates alternative production possibilities for a bakery. It wants to raise cake output from 15 units to 25 units. What is the opportunity cost?
May/June 2016
The diagram shows curve PP as the production possibility curve for a country that produces goods X and Y. Making X uses more labour than making Y. A law cuts the working hours of the labour force. Which curve could represent the country’s new production possibility curve?
May/June 2016
Joshua and Ruth are the sole inhabitants of a remote island. In the diagram, line XY represents the greatest quantity of goods available to Joshua and Ruth, while line OE shows points of equal distribution of the goods. Relative to the original point I, which point would show a rise in economic welfare under the Pareto Efficiency Criterion?
May/June 2016
Each diagram presents the production possibility curves for the two economies, X and Y, as they make food and clothes. In which diagram would both economies gain if they specialised in the good in which they have comparative advantage and traded at an exchange rate of 1 unit of clothes to 1.5 units of food?
May/June 2017
The diagram indicates that the production possibility frontier for maize and beans has shifted from PPF1 to PPF2. What change has occurred in the opportunity cost of maize and in the returns to factors producing beans?
May/June 2017
Line XX shows the production possibility curve (PPC) for a worker who picks peas and beans during a 10 hour working day. What would make the worker’s PPC move to line YY?
May/June 2017
The diagram illustrates a production possibility curve for an economy operating at point P. Which amount of Y must be sacrificed in order to make the amount of X shown?
May/June 2017
Use production possibility curves to compare the output changes in the RoI and Iceland shown in Fig. 1.
May/June 2017
What is one essential condition for achieving productive efficiency?
May/June 2017
The diagram illustrates the production possibility curve of an economy. What could allow consumers in this economy to enjoy the combination of goods X and Y shown by point L?
May/June 2017
The diagram shows that a country is able to make manufactured goods and agricultural products. Using this information, which statement is certainly correct?
May/June 2018
YX shows the production possibility curve (PPC) for an economy. Its equation is qY = 1000 – 2qX. What is the opportunity cost of making one additional unit of good X?
May/June 2018
In the diagram, MN represents the production possibility curve for a country that has a comparative advantage in producing good Y. What could allow the country to consume the quantities of X and Y shown by point R?
May/June 2018
In 1 hour, a farmer harvests 10 kg of strawberries. The farmer is twice as efficient at harvesting raspberries. Which diagram represents the farmer’s daily production possibility curve when they work for 8 hours a day?
May/June 2018
XY shows the production possibility curve (PPC) for a firm making desks and chairs. What are the opportunity costs of producing the 4th and 5th desks for the firm?
May/June 2018
The diagram illustrates an economy’s production possibility curve. What leads to a shift from point X to point Y?
May/June 2018
The diagram illustrates a production possibility curve (PPC). It shows the different combinations of consumer goods and capital goods that an economy can produce when all its resources are fully used. What is indicated by position X?
May/June 2019
A production possibility curve for a country is shown. What would bring about the shift from PP to P1P1?
May/June 2019
Which factor would determine the boundary of a country’s production possibility curve?
May/June 2019
What is true at any point on an economy’s production possibility curve?
May/June 2019
Explain, with the help of diagrams, how (i) constant and (ii) increasing opportunity costs influence the shape of an economy’s production possibility curve.
May/June 2019
At what point can an economy be described as economically inefficient?
May/June 2019
An economist knows the present position where an economy is operating on its production possibility curve. What can the economist infer about the economy from this information?
May/June 2020
Explain, with the help of a production possibility curve (PPC) diagram, why scarcity makes choice unavoidable for firms and why every choice has an opportunity cost.
May/June 2020
Use production possibility curve diagram(s) to show the difference between economic growth and a decrease in the amount of unused resources in an economy, and explain one reason that could bring about each one.
May/June 2020
The diagrams illustrate the production possibility curves for four countries, W, X, Y and Z. Each country produces rice and cotton with the same resources. After comparing these four countries, what conclusion can be drawn from the diagrams?
May/June 2021
At the beginning of the year, the economy’s production possibility frontier is PPF1 and it is located at point S. By the end of the year, the production possibility frontier has moved to PPF2 and the economy is located at point T. Which diagram indicates that the economy has undergone actual growth but no potential growth?
May/June 2021