Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

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?

  • Aa decrease in the demand for services
  • Ba decrease in the efficiency in the production of services
  • Ca decrease in the opportunity cost of producing services
  • Da decrease in the resources employed in services

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