Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

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?

  • Aa lower ratio of capital to consumer goods is necessary to achieve economic growth
  • Bincreasing levels of unemployment
  • Cinsufficient factors of production are available
  • Dtoo many consumer goods are causing a fall in economic growth

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