Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

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?

  • A[IMAGE:9708_s21_qp_32_p10_diagram_1]
  • Bdiagram B
  • C[IMAGE:9708_s21_qp_32_p10_diagram_3]
  • D[IMAGE:9708_s21_qp_32_p10_diagram_2]

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