Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

The diagram illustrates the production possibility curve XX for an economy producing both consumer goods and capital goods. If the economy shifts from point M to point N, which diagram is the most likely future location of the production possibility curve YY?

  • A[IMAGE:9708_w14_qp_12_p3_diagram_5]
  • BDiagram B (see figure)
  • C[IMAGE:9708_w14_qp_12_p3_diagram_3]
  • D[IMAGE:9708_w14_qp_12_p3_diagram_2]

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