Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

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?

  • AP to Q followed by Q to R
  • BP to Q followed by Q to S
  • CP to R followed by R to Q
  • DP to R followed by R to S

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